Demand for gold during the holidays and as a safe haven drove prices past Rs 1,11,000, setting a new record high.
According to the India Bullion Association, prices in India increased from Rs 1,10,430 per 10 gm earlier today to Rs 1,11,870. On Friday, the cost was Rs 1,09,530.Following the US Federal Reserve meeting last week, gold prices fell even more. Prior to the meeting, the commodity reached a new high of $3,707.57 on Wednesday.
On September 15, gold crossed the Rs 1,10,000 mark, and the rally was fuelled by the Fed's potential rate decrease. Following this decision, market analysts are upbeat about gold's long term prospects.
The Fed's move was widely expected to sustain a rising trend for the precious metal.
The Fed wants to monitor the data because inflation and the labour market continue to worry them.
In the long run, the gold trend appears to be promising," Gupta said. As the event goes on, there may be some profit booking in the very near future.
The World Gold Council reports that spot prices increased to $3,714 today. Additionally, the October 3 futures prices increased by 1.40% to Rs 1,11,382.
On Monday, the price was Rs 1,11,530 per 10 gm in New Delhi and Rs 1,11,720 per 10 gm in Mumbai.
The rate was Rs 1,11,810 per 10 gm in Bengaluru and Rs 1,11,570 per 10 gm in Kolkata. With a price of Rs 1,12,050 per 10 gm, Chennai has the highest price of the precious commodity.
Earlier today, the World Gold Council reported that the price of spot gold was $3,689 per ounce. Earlier today, the yellow metal's Oct. 3 futures were trading at Rs 1,09,900.
