Gold Rate in India Pauses For A Breath! Will Gold-Silver Rally Or Consolidate Before Dhanteras? 17 Oct Outlook

Gold Rate in India: The 5-day sharp rally in gold rate in India finally came to a halt on Thursday, October 16, when gold prices remained stagnant. Meanwhile, silver rate in India saw a mild decline. The minor halt has raised expectations of some price corrections ahead of Dhanteras festival celebration on Saturday. However, extended US shutdown concerns, US-China trade tensions, and geopolitical concerns are likely support the precious metals' movement on Friday, October 17.

Gold rate in India has surged nearly 65% since the beginning of the year, whereas, silver prices in India have jumped nearly 70% since the beginning of the year. Experts believe that the last three months of the year are likely to see further upside.

Gold Rate in India

The price of 24 karat gold in India remained stable at Rs 12,944 per gram on Thursady, October 16. Whereas, the rate of 22 karat gold in India remained stable but close to record high mark at Rs 11,865 per gram. The price of 18 karat gold rate in India stood at Rs 9,708 per gram.

Silver Rate in India

The price of silver in India saw some decline on Thursday, but remained close to record high mark. Silver rate in India stood at Rs 189 per gram and at Rs 1,89,000 per kilogram. Silver price in India has surged to record high level due to strong industrial demand, supply side bottlenecks and heavy inflows by investors.

Gold, Silver Rate MCX

Gold futures with December expiry surged again on Thursday to Rs 1,28,000 per 10 gram. Whereas, gold futures with November expiry surged marginally and were trading at Rs 1,27,416 per 10 gram at 5:07 pm today. Silver futures with December expiry were trading higher at Rs 1,64,281 per kilogram.

Gold, Silver Price Outlook

Gold and silver price may see some surge on Friday given the brief pause in rally and surge in festive season demand. "The rally in precious metals has been underpinned by a steady dollar index below 100 and rupee appreciation, both of which have supported domestic prices. Markets are now pricing in a 70% probability of U.S. Federal Reserve rate cuts in October and December, amid weaker U.S. labor data and rising fiscal concerns," noted Motilal Oswal in its report.

Commenting on gold price outlook, the brokerage added in its report, "As Diwali approaches, seasonal patterns once again favor gold. Historically, prices in India have risen in seven of the past ten Diwali seasons, with pre-Diwali gains often outpacing post-festival trends."

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