Gold Surges Rs 2,000 To All-Time Peak, Reaching Rs 94,150 Per 10 Gram

Gold prices in the national capital experienced a significant surge, climbing Rs 2,000, the largest increase in nearly two months, to reach a new peak of Rs 94,150 per 10 grams on Tuesday.

This surge was attributed to consistent buying from stockists and jewellers, according to the All India Sarafa Association. The price of 99.9% purity gold was Rs 92,150 per 10 grams on Friday.

Gold of 99.5% purity also saw a rise of Rs 2,000, reaching a lifetime high of Rs 93,700 per 10 grams, up from Rs 91,700 per 10 grams. The previous record one-day increase in gold price was Rs 2,400 per 10 grams, recorded on Feb. 10. Since the start of the year, gold prices have risen by Rs 14,760, or 18.6%, from Rs 79,390 per 10 grams on Jan. 1.

Conversely, silver prices declined by Rs 500 to Rs 1,02,500 per kg on Tuesday, after closing at Rs 1,03,000 per kg on Friday. The bullion markets were closed on Monday for Eid-ul-Fitr.

In the futures market, gold for June delivery increased by Rs 683 to a new high of Rs 91,400 per 10 grams on the Multi Commodity Exchange. Internationally, spot gold reached a fresh peak of $3,149.03 per ounce.

"Gold (prices) have surged to a record high... for the fourth successive session, driven by escalating concerns over potential US trade tariffs. President Trump's planned levies on all trading partners, set for announcement on Wednesday, have heightened fears of retaliatory measures and global economic instability," said a note by Kotak Securities.

"This geopolitical uncertainty, coupled with Trump's volatile stance on the Russia-Ukraine conflict, is fuelling safe-haven demand for gold," the brokerage firm said.

Comex gold futures also reached a record high of $3,177 per ounce.

"Investors appear to believe that a tariff-driven slowdown in US economic growth will push the US Federal Reserve to resume its rate-cutting cycle soon, bolstering traders sentiment and contributing to gold's bull run," Saumil Gandhi, senior analyst of commodities at HDFC Securities, said.

Additionally, spot silver in the Asian market hours went down by 0.74% to $33.83 per ounce.

The market participants will monitor US data, including job opening numbers to be released later on Tuesday, the ADP employment report on Wednesday, and the non-farm payroll figures on Friday that could provide insights into the Fed's rate-cut trajectory, according to Abans Financial Services' Chief Executive Officer Chintan Mehta.