Record gold prices are impacting the festive sales in India, thus forcing dealers to offer discounts.Gold prices in India have hit a fresh all-time high of Rs 77,410 per 10 grams, an increase of Rs 600 as compared with the previous close. Silver prices also increased to Rs 92,283 per kg, as against Rs 91,600 in the previous day.Continuing their upward trajectory, 24k gold prices in India have hit a fresh all-time high of Rs 77,410 per 10 grams, an increase of Rs 600 as compared with the previous close, according to the latest bullion rates from the Indian Bullion and Jewellers Association (IBJA) on Saturday.Silver prices also increased to Rs 92,283 per kg, as against Rs 91,600 in the previous day.“This robust strength is largely driven by the expectation of ongoing interest rate cuts in the US, with further reductions anticipated in the near future. The broader trend in the MCX gold has been distinctly positive since it hit lows below Rs 68,000 earlier in the year, and the current rally to above Rs 77,500 represents a significant appreciation,” said Jateen Trivedi, vice-president (research analyst- commodity and currency) of LKP Securities.According to traders, gold prices have been increasing for the past few days due to heightened geopolitical risks and the rupee fall.The rupee is trading below the 84 mark against the US dollar. A costlier dollar makes gold in India expensive as the precious metal is mainly imported in the country.The Israel-Lebanon-Iran issue is also not seeing any de-escalations, which is pushing the price of gold due to a safe-haven buying, the traders said.With the latest increase, the returns on gold in the current year 2024 have increase to 22 per cent. However, on a Diwali-to-Diwali basis, gold prices have now increased about 30 per cent, which makes the yellow metal one of the standout performers of the year.Gold Prices At Record High: Diwali Sales ImpactedThe festive season in India generally sees an increased sale of bullion items. However, this time, the record prices are impacting the festive sales in India, thus forcing dealers to offer discounts.“The ongoing price rally is slowing down the demand. Consumers are buying less volume because they need to allocate far more money if they want to buy the same volume they planned with the rising prices,” according to Reuters citing Bachhraj Bamalwa, partner at Indian jewellery retailer Nemichand Bamalwa & Sons.“Jewellers aren’t feeling too confident about Diwali sales this year due to rising gold prices. To keep customers interested, many are offering discounts on jewellery making charges to help boost their sales during the festive season,” a Mumbai-based bullion dealer with a private bank told Reuters.Will Gold Price Hikes Continue?“Looking ahead, the price momentum remains strong, with a potential upside target of Rs 78,500 in the coming sessions. On the downside, the key support level is seen around Rs 75,000, providing a solid base for any short-term pullbacks,” said TrivediAs long as the interest rate cut expectations and geopolitical tensions persist, the bullish outlook for gold should remain intact, he added.Mohammad HarisHaris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experi…Read More