Gold Surges Past Rs 89,000, Silver Hits Four-Month High With Rs 2,000 Rally

Gold prices soared by Rs 1,300 to hit an all-time high of Rs 89,400 per 10 grams amid heavy buying from jewellers and retailers, according to the All India Sarafa Association. The precious metal of 99.9% purity had closed at Rs 88,100 per 10 grams on Thursday.

Gold of 99.5% purity climbed by Rs 1,300 to hit a fresh peak of Rs 89,000 per 10 grams against the previous close of Rs 87,700 per 10 grams.

Silver also rallied by Rs 2,000 to hit a four-month high of Rs 1 lakh per kg on Friday. The metal had finished at Rs 98,000 per kg on Thursday.

In futures trade on the MCX, gold contracts for April delivery rose Rs 184 to Rs 85,993 per 10 grams.

"Gold prices continued their upward momentum, driven by a weaker dollar index and sustained support from US tariff policies. Gold rose on MCX, while Comex gold gained to trade at $2,935 per ounce," Jateen Trivedi, VP research analyst, commodity and currency at LKP Securities.

The focus now shifts to upcoming US Retail Sales and Core Retail Sales data, which could influence the next move in gold, Trivedi added.

Silver futures zoomed by Rs 2,517 or 2.64% to Rs 97,750 per kg on the Multi Commodity Exchange (MCX).

Globally, Comex gold futures for April delivery rose $6.49 per ounce to $2,951.89 per ounce. Meanwhile, spot gold traded higher at $2,929.79 per ounce.

According to Kotak Securities, Comex gold futures extended their rally for a third consecutive day, approaching a record high of $2,960 per ounce as upward trend positions gold for a seventh straight week of gains, the longest such streak since August 2020.

The potential for reciprocal tariffs against several nations, as directed by US President Donald Trump, has introduced uncertainty into global trade and economic outlook.

This development coincides with existing tariffs on Chinese goods and impending duties on steel and aluminium imports. The combined effect of these factors is likely contributing to gold's safe-haven appeal and driving its price upward, the brokerage firm said.

Comex silver futures in the Asian market hours quoted nearly 4% higher at $34 per ounce.