Gold shines bright, prices cross Rs 1,16,000 per 10 gm mark

Gold prices in India have surged to a new record high, crossing the Rs 1,16,000 per 10 gm mark amid strong festive demand and global safe-haven buying. On Tuesday, the yellow metal was quoted at Rs 1,16,410 in the domestic market, up by Rs 1,470 from Monday's close of Rs 1,14,940, according to the India Bullion Co.

Factors driving gold prices:

• Festive Demand: The festive season in India has led to increased demand for gold, driving prices up.
• Global Safe-Haven Buying: Investors are seeking safe-haven assets like gold amid economic uncertainty, supporting prices.
• US Federal Reserve Rate Cut Expectations: Expectations of a U.S. Federal Reserve rate cut have also contributed to the rise in gold prices.

Price variations across cities:

• New Delhi: Rs 1,16,000 per 10 gm
• Mumbai: Rs 1,16,200
• Bengaluru: Rs 1,16,290
• Kolkata: Rs 1,16,050
• Chennai: RS 1,16,540 (the highest)

Analysts say the festive season demand, coupled with central bank buying and investor appetite for safe-haven assets, is likely to keep gold prices high in the months ahead. While the outlook for gold remains positive in the long term, some profit booking could occur in the near term as investors take gains.