Gold Prices Soar Amid Festive Season Demand

Gold prices have been highly volatile in recent months due to movements in US Treasury yields and changing expectations around interest rates. On September 25, gold surged as experts anticipate strong demand ahead of the upcoming festive season. Despite this surge, gold has still declined significantly from its peak earlier in the year.

The price of gold on MCX rose by Rs 500 to Rs 1,51,135 per 10 grams, while silver futures increased by Rs 700 to Rs 2,34,151 per kg. The surge in gold prices is attributed to the expectation of strong demand ahead of the festive season.

Ajay Kedia, Director at Kedia Advisory, noted that New York Fed President John Williams' indication of another rate hike before year-end could be appropriate, putting pressure on bullion despite continued structural support.