Enthusiasm for car buying during festivals and a major surge in gold and silver prices

As the festive season approaches, significant changes are being observed in the buying trends of Indian consumers and the market situation. According to a recent survey, one in three Indian consumers is considering buying a new car during the festivals. Among these customers, the preference for electric vehicles has increased from 21 percent to 22.8 percent, while the proportion of people opting for petrol cars has reached 31.3 percent from 30 percent. However, diesel cars still remain the least preferred by customers, with a share of only 8.8 percent.

On the other hand, a sudden major surge has been observed in gold and silver prices on Wednesday. The rise in precious metals after a continuous decline is primarily due to the results of the midterm elections held in the US and the weakness of the dollar. In this situation, investors have increased their investments in gold and silver as a safe option.

On the Multi Commodity Exchange (MCX), gold for December delivery rose by 2.21 percent, or 3,088 rupees, to reach the level of 1,42,540 rupees per 10 grams. Similarly, a 3.84 percent surge was recorded in silver prices, which increased by 6,902 rupees to reach 1,86,600 rupees per kilogram. In the international market as well, gold rose by 3 percent to 4,043.93 dollars per ounce and silver rose by 4.5 percent to 52.03 dollars per ounce.

A major surge in prices has also been observed in the local market of Delhi. According to the All India Bullion Association, due to festive buying and the surge in the global market, 99.9 purity gold in Delhi rose by 4,800 rupees to 1,46,600 rupees per 10 grams, which was 1,41,800 rupees on Tuesday. Silver prices saw a jump of 9,000 rupees and reached the level of 1,93,000 rupees per kilogram.

According to experts, the weakening of the US dollar and a decline in bond yields are responsible for this surge. According to Praveen Singh of Mirae Asset Sharekhan, regulatory scrutiny on the tech sector may increase after the Democrats' victory, which could put pressure on the US economy. Compared to last Dhanteras, the price increase this time is only 5-7 percent, whereas it was 65 percent last year.

Market experts are now keeping an eye on the support level of 1,40,000 rupees and resistance levels of 1,43,000 to 1,43,700 rupees for gold. For silver, the support is considered to be between 1,78,000 to 1,80,000 rupees and resistance between 1,86,000 to 1,88,000 rupees. Jatin Trivedi of LKP Securities stated that investors are now monitoring the dollar, bond yields, and Federal Reserve policies to determine whether this surge will be sustainable for a long time.

The US midterm elections are a part of the country's political process, in which voting for both houses of parliament usually takes place in the middle of a president's term. These elections often influence the country's economic policies and global market sentiment, as they reflect the popularity of the ruling party and its ability to implement upcoming policies.