Gold Fever Grips India! 24K Just Steps Away From Rs 1.3 Lakh; Will It Cross Historic Level? 16 October Outlook

Gold rates in India have surged sharply in recent weeks, dashing investors' hopes for any price consolidation ahead of the Diwali celebrations. On Wednesday, October 15, gold inched closer to the Rs 1.3 lakh mark, while silver also hit record highs. All eyes will remain on gold price movements on Thursday, October 16.

The massive surge in gold rate in India mirrors the record breaking rally worldwide. The gold price rally is driven by expectations of another US Fed rate cut, US-China trade tensions and other geopolitical tensions.

Gold Rate in India

The price of gold surged significantly on Wednesday. 24 karat gold rate in India surged nearly 5,400 (per 100 gram) to Rs 12,88,900. Likewise, the price of 22 karat gold rate in India surged by 500 to cost Rs 118,150 per 10 grams. Similarly, the 100 g of 24-carat gold surged by Rs. 5400 to cost Rs. 12,88,900, and the 22-carat gold per 100 grams also saw a jump of Rs. 5000 to retail at Rs. 11,81,500. Meanwhile, 18 karat gold rate in India surged to Rs 97,080 per 10 gram.

Silver Rate in India

Silver prices in India have reached a new high. The cost of 1 kg of silver has increased by Rs. 1,000, bringing the price to Rs. 190,000. Similarly, the price for 100 grams of silver has risen by Rs. 100, making it Rs. 19,000.

Gold, Silver Price Outlook

Gold and silver rates in India may some price correction given the record breaking rally witnessed over the past few days. "Gold has now reached our second target of USD 4200 (USD 3700 Prior Target from May 2024) much faster than anticipated. China's continued buying, which was anticipated to be weaker in September but turned out to be wrong, has reignited confidence on the yellow metal and its long term trajectory. ETF and other emerging market reserve bank buying continues unabated. Anticipation of a global (uncertain) downturn , increased trade conflicts esp China US, the US Govt shutdown, the continuing war between Russia and Ukraine and of course, potential Fed actions are all adding fuel to the fire," noted PL Capital.

"We continue to advise a 5% allocation at the minimum to the metal even at current prices and believe that unless USD 3950 is violated , we are headed towards 4800 USD / Oz in the near term. A move below 3950 would violate the near term bullish view seriously and profit booking may emerge," the brokerage added.