Gold prices rose by Rs 1,650 to an all-time high of Rs 98,100 per 10 grams in the bullion market of the national capital on Wednesday amid a surge in buying in safe havens globally amid the escalating trade war between the US and China.
According to the All India Sarafa Association, gold of 99.9 per cent purity closed at Rs 96,450 per 10 grams on Tuesday. Gold prices had recorded their biggest single-day rise on April 11, when it jumped by Rs 6,250 in local markets.
So far this year, gold prices have risen by Rs 18,710 or 23.56 per cent from the level of Rs 79,390 per 10 grams on January 1. Gold of 99.5 per cent purity also rose by Rs 1,650 to a new high of Rs 97,650 per 10 grams, compared to its previous closing price of Rs 96,000 per 10 grams.
Apart from this, silver prices increased by Rs 1,900 to Rs 99,400 per kg. On Tuesday, silver had closed at Rs 97,500 per kg.
“Gold once again rallied strongly… MCX gold touched a historic high of Rs 95,000 while COMEX gold crossed $3,300, indicating strong safe-haven demand,” said Jatin Trivedi, Vice President (Research Analyst) of Commodities and Currencies, LKP Securities.
Trivedi said the rise was due to geopolitical uncertainty and the absence of any constructive progress in tariff talks between the US and China. Unless there is a tangible result of reducing tensions, gold is likely to remain at higher levels.
Globally, spot gold hit a record high of $3,318 an ounce. Later, it pared some gains and traded at $3,299.99 an ounce.
Silver rose nearly two percent to $32.86 an ounce in Asian trading hours.
Market participants are now monitoring macroeconomic data, including US retail sales and industrial production, for further signals on the US Federal Reserve’s interest rate cycle, said Sawmil Gandhi, senior commodity analyst at HDFC Securities.
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