Ever since the US Federal Reserve cut interest rates, gold and silver prices have been steadily rising across the world. On Thursday, a new record was set in the Delhi bullion market and the price of gold crossed Rs 78,000 per 10 grams. During trading, the price of gold rose by Rs 400 compared to the previous day.

The effect of the strengthening bullion price in the international market is also visible in India. On Thursday, the price of 24-carat gold jumped by Rs 400 to Rs 78,250 per 10 grams. Silver also registered an increase of Rs 1,000 and its price reached Rs 94,000 per kilogram.

According to the All India Sarafa Sangh, gold recorded a record rise for the second consecutive day. Whereas a day earlier on Wednesday, the price of gold closed at Rs 77,850 per 10 grams. While the price of silver reached Rs 93,000.

Why are the prices of gold and silver increasing?

A major reason for the increase in demand for gold and silver is the increase in industrial demand. The demand for gold and silver coins is expected to increase during the festive season in the coming days. Therefore, the demand for coin minting plants is constantly increasing. On the other hand, the strong trend in the international market is also making gold and silver stronger.

The price of 22-carat gold used in jewelry also reached a new record high of Rs 77,900 per 10 grams. During the previous trading, gold had closed at Rs 77,500 per 10 grams.

Gold prices also rose in the futures market.

On the Multi Commodity Exchange, gold prices in the futures market rose by Rs 162. The price of gold for October delivery rose to Rs 75,475 per 10 grams. Similarly, the price of silver for December delivery rose by Rs 1,034 to Rs 93,079 per kg. On the other hand, in the international markets, Comex gold rose 0.61 percent to $ 2,701.20 an ounce. Silver also rose 2.63 percent to $ 32.86 an ounce during Asian trading hours.

HDFC Securities Senior Analyst-Commodities Saumil Gandhi said that the easy monetary policy of major Western central bankers and growing concerns about escalating war in West Asia have helped in increasing the prices of gold.