Gold jumped by as much as Rs 200 from yesterday’s close to reach an all-time high of Rs Rs 15,900 per 10 grammes in the Indian capital, New Delhi.
A similar spurt was recorded in global markets, which jumped to a 6-month high of almost $1,000 an ounce.
The foremost reason most analysts have given to explain the phenomenon is that traders are stocking up the commodity before the start of the inauspicious ‘Shraad’ fortnight period, during which no such trades are supposed to be carried out.
However, what is adding to the price progress in the yellow metal is that investors are being chary of the volatile stock markets (they have also been range-bound for more than a month now) and are safeguarding their money by investing in bullion.
The ‘Shraad’ period is quickly followed by the auspicious period that is marked by festivals like Diwali and the start of the marriage season, which usually drives gold retail sales to the year’s high.
The other precious metal to show a significant surge was silver. It jumped by as much as Rs 700 to reach the Rs 25,300 mark.