Gold prices surged by Rs 300 on Wednesday to nearly reach a record high of Rs 89,300 per 10 grammes in Delhi, driven by a strong global trend, according to the All-India Sarafa Association.
In the previous market session, gold had closed at Rs 89,000 per 10 g. The precious metal had previously hit a record high of Rs 89,450 per 10 g on Feb. 20.
"Gold prices continued their upward trend on Wednesday, extending their winning streak for the third day in a row as the demand for safe-haven assets and soft US dollar supported yellow metals," Saumil Gandhi, senior analyst of commodities at HDFC Securities, said.
According to Gandhi, the implementation of US tariffs and counter-retaliation by Canada and China increased the risk of escalating the trade war and a global economic slowdown, which favours gold demand for safety.
Gold of 99.5% purity rose by Rs 300 to Rs 88,900 per 10 g, marking the third consecutive session of gains. It had settled at Rs 88,600 per 10 g on Tuesday.
Silver prices also increased by Rs 1,000 to Rs 99,000 per kg, up from Tuesday's closing level of Rs 98,000 per kg.
Meanwhile, gold futures for April delivery on the MCX increased by Rs 38 to Rs 86,064 per 10 g.
Globally, gold futures for April delivery rose 0.18% to $2,926 per ounce. However, spot gold is trading flat at $2,917.72 per ounce.
"Gold is trading near $2,925, but the sharp upside is limited as US Commerce Secretary Howard Lutnick suggested a possible tariff relief for Canada and Mexico. If an agreement is reached and levies are eased, it could put downward pressure on gold prices," Kaynat Chainwala, assistant vice president of commodity research at Kotak Securities, said.
Chainwala also said traders are closely watching services PMI data from major global economies and US private payroll numbers for insights into the global economic outlook.
Comex silver futures in the Asian market hours quoted 1.63% higher at $32.91 per ounce.
Key US macroeconomic data, including ADP Nonfarm Employment and non-farm payrolls, will be closely monitored by the market participants for the trajectory of the bullion prices, according to Jateen Trivedi, research at LKP Securities.
(With PTI Inputs)
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