Gold Price: An upward trend was seen in the prices of gold and silver on Monday. The weakness in the US dollar and the expectation of a possible cut in interest rates by the US Federal Reserve next month have once again attracted investors towards safe investment instruments.
On the afternoon of November 10, gold was trading 1.64% higher at Rs 1,23,057 per 10 grams on MCX, while silver jumped 2.66% to Rs 1,51,657 per kg.
Why are the prices of gold and silver increasing?
Many factors are working behind the rise in gold and silver prices:
- Due to global economic uncertainty and expectation of reduction in interest rates in America, investors in the market have turned towards precious metals.
- The weak US dollar has made gold and silver cheaper for international buyers, leading to an increase in demand.
- Concerns about the stability of the US economy have made investors believe in safe investment options, such as gold and silver.
What should investors do?
Market experts say that due to global uncertainty and wedding season, the prices of precious metals may remain strong in future.
- It is still an attractive option for a long-term investor, but it is important to keep short-term fluctuations in mind.
- Experts suggest that before buying, the support level and market direction should be considered.
- Jewelers believe that due to the wedding season, retail demand will remain strong, which will put upward pressure on prices.
How are the prices of gold and silver decided?
Gold and silver prices depend on many domestic and international factors:
- Dollar-Rupee Exchange Rate – The prices of gold and silver in the international market are fixed in dollars, hence the weakness of the rupee increases the prices in India.
- Import Duty and Taxes – Most of the gold is imported into India, due to which Import Duty, GST and local taxes affect the price.
- Global events – Events such as war, recession, or changes in interest rates directly affect the prices of precious metals.
- Cultural and seasonal demand – In India, gold is not just an investment but also linked to tradition. Prices rise due to increased demand during wedding and festival seasons.
- Inflation and market risk – When inflation increases or there is instability in the stock market, then investors consider gold as a safe option, due to which the prices rise.
In the current situation, the upward trend in both gold and silver continues. However, for short-term investors the market will remain volatile. Long term investors and consumers purchasing weddings should take decisions carefully and keep an eye on market trends.
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