Gold and Silver Prices Surge Ahead of Dhanteras and Diwali 2024

As the festive season of Dhanteras 2024 (Dhantrayodashi 2024) and Diwali 2024 approaches, both gold and silver prices are showing significant upward momentum. Silver has recently surpassed the Rs 1 lakh mark in the physical market, while in the global arena, Comex silver prices have surged past $34.50 per ounce, reaching their highest levels in 12 years. This remarkable rise has drawn attention from investors looking for safe-haven assets.

Silver’s Meteoric Rise

Silver prices have been on a strong upward trajectory, gaining 11% this month alone, marking its best monthly performance since May 2024. The metal has surged 46% year-to-date, outpacing gold, which has gained 33.3% during the same period. Several global factors have contributed to silver’s bullish run, including geopolitical tensions in the Middle East, European Central Bank (ECB) interest rate cuts, and uncertainty surrounding the upcoming US elections.

In India, silver is particularly in demand during festivals like Dhanteras and Diwali, where it is often purchased for jewellery. Globally, however, the industrial sector plays a major role in driving silver’s demand. Silver’s wide use in electronics, solar panels, batteries, and semiconductors has increased its value significantly. Expectations of further interest rate cuts by the Federal Reserve have further buoyed silver’s market value.

Gold Prices Maintain Their Safe-Haven Appeal

Gold, too, has seen a steady rise, achieving a 33% year-to-date performance, the highest since 2007. This surge can be attributed to several global factors, including the war between Russia and Ukraine, escalating tensions in the Middle East, and a substantial 50 basis point rate cut by the US Federal Reserve. These geopolitical and economic uncertainties have driven investors to seek refuge in gold as a reliable safe-haven asset.

Historical Returns on MCX Gold

Looking back at the past three years, MCX Gold has delivered double-digit returns during the Dhanteras to Dhanteras period, underlining gold’s reliability as a long-term investment. The returns for the past three years are as follows:

The consistent performance of gold over the years further reinforces its position as a lucrative asset, especially during times of uncertainty.

Investment Outlook for the Festive Season

As we approach Dhanteras 2024 and Diwali 2024, the rising prices of both gold and silver are expected to continue. The ongoing geopolitical tensions, economic uncertainty, and global interest rate policies are driving more investors toward precious metals, making them an attractive option during this festive season. Gold’s reliability and silver’s affordability make them key investment choices ahead of these key festivals.

With silver surpassing Rs 1 lakh and gold maintaining steady growth, both metals present an appealing opportunity for retail and institutional investors alike.

Conclusion

As the festive season approaches, investors are flocking to gold and silver due to their safe-haven status amidst global uncertainties. Both gold and silver prices have seen a robust performance ahead of Dhanteras and Diwali 2024, with silver outpacing gold in terms of year-to-date gains. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.