Reasons Behind India's Record Rally in Gold and Silver Prices 2024

Gold Prices Maintain Record Rally Amid Geopolitical Tensions, Silver Hits 3-Year High Globally

Amidst continued geopolitical tensions in the Middle East and speculative buying, gold prices soared to new heights on April 8. Despite robust US job growth in March, gold's ascent remained unabated.

Silver prices followed suit, reaching a 3-year pinnacle near $28 per ounce globally. In India, silver prices surged to an unprecedented high, nearing Rs 82,000 per kilogram. The week witnessed an 11 percent surge in silver prices, with a month-on-month increase of 14 percent.

Spot gold climbed 0.6 percent to $2,343.89 per ounce, reaching a peak of $2,353.79 earlier in the session. US gold futures also saw a rise of 0.7 percent, reaching $2,361.09.

Kyle Rodda, a financial market analyst at Capital.com, noted, "If you look at futures pricing, we're seeing indications now that there's a bit of momentum chasing in the market...to an extent we're seeing a little bit of excessive optimism about the outlook for gold at the current level," in conversation with Reuters.

In India, Demand for Gold Cools Amidst Skyrocketing Prices; Premiums Steady in China

Last week, the appetite for gold in India waned as soaring domestic prices deterred buyers, while premiums remained stable in China, the leading consumer market.

Silver witnessed a 1.4 percent uptick, reaching $27.85 per ounce, while platinum saw a marginal rise of 0.1 percent, settling at $928.11. Meanwhile, palladium experienced a 0.4 percent increase, reaching $1,006.88.