Gold prices extended their festive rally for a second consecutive day in the national capital on Thursday, rising by Rs 2,200 to Rs 1,48,800 per 10 grams on buying by jewellers and retailers ahead of the Dhanteras festival.
PTI reported the All India Sarafa Association as saying that the 99.9% purity precious metal appreciated by Rs 2,200 to Rs 1,48,800 per 10 grams, inclusive of all taxes, from Wednesday's close of Rs 1,46,600 per 10 grams.
Silver prices also extended their gains, climbing Rs 1,500 to Rs 1,94,500 per kg, inclusive of all taxes, from Rs 1,93,000 per kg in the preceding session.
Traders said bullion buying gathered pace as jewellers, retailers and stockists stepped up purchases ahead of Dhanteras on Friday, an auspicious occasion for buying precious metals, followed by Diwali on Sunday.
Investment demand also supported buying interest, they added.
The festive-season rally comes against the backdrop of a sharp year-on-year rise in precious metal prices. On Dhanteras last year, celebrated on October 18, gold was priced at Rs 1,32,400 per 10 grams and silver at Rs 1.7 lakh per kg.
Gold has gained around 13% since then, with domestic prices moving in the Rs 1.40-1.48 lakh range, said Dhruv Joglekar, Assistant Fund Manager at Monarch PMS.
The returns have comfortably outperformed typical capital-protection benchmarks in a highly volatile year, he added.
On the global front, spot gold climbed $65.12, or nearly 2%, to $4,125.25 per ounce, crossing the $4,100 mark. Silver also rose 1% to $52.73 per ounce.
Spot gold advanced towards $4,127 per ounce as crude oil prices declined amid speculation that the US could seek an early resolution to the Iran conflict, said Praveen Singh, Head of Commodities at Mirae Asset Sharekhan.
US Vice President JD Vance attributed the Republican Party's poor performance in the midterm elections to the Iran conflict, fuelling expectations that the Trump administration could explore a deal with Tehran.
The prospect of easing geopolitical tensions and concerns over war funding weighed on oil prices, Singh said.
Kaynat Chainwala, AVP, Commodity Research at Kotak Neo, said spot gold had extended its advance to above $4,140 an ounce, while silver had moved closer to $53. She attributed the gains to a further decline in crude oil prices and the Democratic sweep in the US midterm elections, which kept pressure on the dollar and Treasury yields.
The move followed the previous session's rally, when gold jumped more than 3% to close above $4,060 an ounce and silver surged 5% to $52.20, as an over 8% fall in crude oil prices eased inflation concerns and reduced the likelihood of further Federal Reserve tightening.
A weaker dollar, which fell to a one-month low, and lower borrowing costs have made non-yielding assets more attractive, while the election outcome has also shifted expectations around fiscal stimulus and policy risks, she said.
Silver has outperformed gold during the rebound, although its industrial exposure makes it more sensitive to concerns about economic growth.
Market attention now turns to the US jobs report due on Friday. A strong labour market reading could reinforce expectations of interest rate hikes and cap the recovery, while weaker data could support further gains.
Oil prices and progress in US-Iran diplomacy remain additional factors influencing bullion. Continued weakness in crude prices and bond yields would favour further gains in gold and silver towards $4,220 and $54.50, respectively, while a rebound in energy prices or hawkish signals from the Federal Reserve could slow the recovery, Chainwala said.
