Dhanteras is considered auspicious for buying gold. From last year's Dhanteras to this year's Dhanteras, gold prices are up about 20%, making investors happy. On MCX, prices of gold futures contracts edged higher by ₹82 to ₹38,434. In the previous session, gold prices had surged 0.91% or nearly ₹350 per 10 gram. Gold prices have edged higher just ahead of Dhanteras, tracking a similar move in global markets. Silver prices on MCX rose 1.85% to ₹46,844 per kg, adding to Thursday's 1.5% gain.
In sport markets, prices of 24 Karat gold in Delhi rallied ₹220 to ₹39,240 per 10 gram while silver rates surged ₹670 to ₹47,680 per kg, Press Trust of India reported, citing HDFC Securities.
In global markets, gold prices today rose two-week high on expectations of another rate cut by the US Federal Reserve later this month. Gold prices today rose to $1,504.35, highest since October 10. New orders for US-made capital goods fell more than expected in September and shipments also declined, in a sign that business investment remains soft.
The US central bank has cut interest rates twice this year and analysts see another cut when policymakers meet next week.
Brexit uncertainty continued after British Prime Minister Boris Johnson proposed a general election to resolve the long-running saga.
Lower interest rates increase the appeal of non-yielding gold, which is often seen as a safer investment during times of political and financial uncertainty.
Meanwhile, holdings of world's largest gold ETF , SPDR Gold Trust, fell 0.13% on Wednesday from Tuesday. However, holding of world's largest silver-backed ETF, iShares Silver Trust, remained unchanged.
US-China trade spat, worries over global growth and monetary policy easing have lifted gold prices up sharply this year. In this year's Budget, the government also increased the import duty on gold to 12.5%, further increasing the landed cost of gold in India. This has hurt retail demand in India, the world's second biggest consumer of gold. (With Agency Inputs)
