Indian festival demand seems to be picking up. The jewellery shop footfalls this time around are 2.5 times higher than what was seen in 2019, according to on-ground estimates. Gold is at a one-month high, with the metal gaining over 2 percent overnight on Wednesday. The gold and silver prices are taking support from the rising crude prices, with other commodities also riding the same trend.

The US has registered a six straight month of hot inflation and US Fed may begin tapering from as soon as mid-November. Markets as of now clearly seem to be focusing on the inflation concern and then you also have seen the US dollar decline, the treasury yields have dipped down as well in last 24 hours that has been supportive for gold prices.

Silver also seems to be following gold and 3 percent of gains has been seen overnight in silver. Silver is a smaller commodity and a lot of volatility has been seen there.

The market has seen a multi-year high at USD 30 per ounce in the month of February. Last month, silver witnessed a low of USD 22 per ounce. Currently the silver is trading at around USD 23 per ounce and much of these one dollar gains have come in last few sessions.

Watch the accompanying video of CNBC-TV18’s Manisha Gupta for more details.

(Edited by : Abhishek Jha)