Gold and Silver Prices Rise Ahead of Wedding Season

Gold and Silver Prices Rebound in Delhi Amid Wedding Season Demand​

Precious Metals Surge Up to 3 Percent on Fresh Buying​

New Delhi, March 30
Precious metal prices witnessed a strong rebound in the national capital on Monday, rising by around 3 percent as jewellers stepped up purchases ahead of the wedding season.

Silver recorded a sharp jump of Rs 7,000, reaching Rs 2.37 lakh per kilogram, while gold prices also moved higher, climbing to Rs 1.51 lakh per 10 grams.

Silver Jumps Over 3 Percent, Gold Gains 2.5 Percent​

According to the All India Sarafa Association, silver surged Rs 7,000, or 3.04 percent, to Rs 2,37,000 per kg inclusive of all taxes, compared to Rs 2,30,000 per kg in the previous session.

Gold of 99.9 percent purity rose by Rs 3,700, or 2.5 percent, to Rs 1,51,500 per 10 grams inclusive of all taxes. In the prior trading session, the yellow metal had settled at Rs 1,47,800 per 10 grams.

Wedding Season Demand and Global Cues Drive Recovery​

Market participants attributed the upward movement to increased physical demand from jewellers preparing for the upcoming wedding season, along with supportive global trends.

Gold prices recovered on the back of dip buying, while declining US Treasury bond yields helped improve sentiment across the precious metals market, according to Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities.

Weak Rupee Adds Support to Domestic Prices​

Domestic price gains were further supported by currency movements. The rupee initially strengthened after the Reserve Bank of India imposed restrictions on onshore long dollar positions to limit speculative activity.

However, the currency later reversed its gains due to strong corporate demand and elevated oil prices. It breached the 95 per US dollar mark for the first time, touching a record low of 95.2350.

The weaker rupee provided additional support to gold prices in the domestic market.

Monthly Losses Remain Steep Despite Rebound​

Despite Monday’s recovery, bullion prices have recorded significant declines during the month.

Gold has fallen by Rs 21,300, or 12.3 percent, since March 2. Silver has seen an even sharper drop, plunging Rs 63,000, or 21 percent over the same period.

Global Markets Show Mild Recovery Amid Volatility​

In international markets, spot gold rose by USD 38.68, or nearly 1 percent, to USD 4,531.67 per ounce. Silver was also trading higher, up 1.35 percent at USD 70.72 per ounce.

Gold continued to trade in a volatile range near USD 4,530 per ounce, as traders closely tracked movements in the US dollar and oil prices, according to Praveen Singh, Head of Commodities at Mirae Asset ShareKhan.

However, overall sentiment remains cautious globally, as gold has declined about 16 percent this month, marking one of its steepest monthly falls in decades, according to Gaurav Garg of Lemonn Markets Desk.