Spot gold is trading near a record high of $2,758.37 per ounce on Dhanteras day (October 29), driven by geopolitical tensions and the looming US presidential election. In India, 24-carat gold prices slightly eased to ₹7,996.3 per gram, down by ₹490, and 22-carat gold to ₹7,331.3 per gram, a drop of ₹450.

Despite this dip, domestic gold prices remain up over 20% year-to-date, as market sentiment stays strong.

Silver is following a similar trend, priced near ₹1 lakh per kilogram in Delhi.

Global trends shaping gold’s path

Several global developments continue to underpin the rising gold prices.

The anticipation of the US Federal Reserve’s interest rate decision on November 5, as well as a near-certain prediction of a 25-basis-point rate cut, has supported gold’s standing in investment portfolios.

Yeap Jun Rong, market strategist at IG, noted, “Gold’s role as a hedge remains prominent, supported by weaker Treasury yields and a cooling dollar.”

Geopolitical risks, especially rising tensions in the Middle East, have also added a safety premium to gold.

Gold’s appeal on Dhanteras

Dhanteras, an auspicious day in India, traditionally draws high gold demand as many people believe buying gold on this day brings prosperity and wealth.

Tapan Patel, Fund Manager-Commodities at Tata Asset Management, highlights the cultural and financial significance: “Investing in gold during Dhanteras is both a gift of tradition and a strategic move for future security.”

As global uncertainties remain high, financial experts encourage buyers to consider gold as part of a diversified portfolio, citing its stability amid market volatility.

Patel advises, “This festival season, investing in gold may be the ideal way to safeguard financial futures, with the precious metal offering a hedge against high-risk assets.”

What should buyers do today and ahead?

For those considering a purchase today, small dips in domestic prices could present a favourable buying opportunity.

Gold’s role as a hedge in volatile times, coupled with central bank buying and the US election’s impact on dollar movements, suggests a sustained support level for gold prices.

Buyers looking for long-term investment might find Dhanteras a strategically beneficial time to start accumulating gold on dips, preparing for future gains as geopolitical and economic factors continue to unfold.

ALSO READ | Gold investors got richer by nearly 30% since last Dhanteras: Should you take dibs?