Gold and Silver Prices Surge Ahead of Diwali

Gold and silver prices delivered another shock to buyers ahead of Diwali, reversing their recent decline and rising sharply on Wednesday. The rally was driven partly by a weaker US dollar amid expectations that Democrats could gain control of the US Congress in the upcoming midterm elections. A decline in the dollar boosted demand for precious metals in the international market. Spot gold rose nearly 2% to cross the $4,000-per-ounce mark again, trading at around $4,025 by 1 pm on Wednesday. Silver was quoted at approximately $51 an ounce, while the rupee stood at 94.84 against the dollar.

In Hyderabad's bullion market, 24-carat gold was priced at around ₹1.45 lakh per 10 grams, including taxes, while silver stood at ₹1.90 lakh per kilogram. Compared with Tuesday's prices, gold gained approximately ₹2,500 and silver rose by nearly ₹5,000. Prices also climbed in the futures market. On the Multi Commodity Exchange (MCX), December-delivery gold was trading at around ₹1.42 lakh per 10 grams, while silver stood at ₹1.86 lakh per kilogram. Compared with Tuesday's closing prices of ₹1.39 lakh for gold and ₹1.79 lakh for silver, the futures market recorded one-day gains of approximately ₹3,000 and ₹6,000, respectively.