Gold With 99.5% Purity Hits Record High Of Rs 82,330 On Strong Global Cues
Prices of silver also surged Rs 1,000 to Rs 94,000 per kg.
Gold prices rose by Rs 630 to a record high of Rs 82,700 per 10 grammes in Delhi on Wednesday. This was on account of strong demand from jewellers and retailers, as well as favourable global market trends, according to the All India Sarafa Association.
This marks the sixth straight session of gains for the yellow metal. Prices of gold with 99.5% purity rose by Rs 630 to Rs 82,330 per 10 grammes, which is its highest increase ever.
"Gold prices hit new highs on Wednesday. Concerns over US President Donald Trump's trade policies appear to be pushing investors toward gold as a safe haven," said Saumil Gandhi, senior commodities analyst at HDFC Securities.
Earlier, on Oct. 31, 2024, gold of 99.9% purity had touched a record Rs 82,400 per 10 grammes, while the 99.5% purity gold hit Rs 82,000 the same day.
On Wednesday, prices of silver also surged Rs 1,000 to Rs 94,000 per kg.
Gold, Silver Futures
Meanwhile, in futures trade on the Multi Commodity Exchange, gold contracts for February delivery increased by Rs 299, or 0.38%, to trade at Rs 79,523 per 10 grammes on Wednesday.
"In the domestic market, MCX gold registered comparatively minor gains, limited by the rupee's strength. This currency strength capped the upward movement in domestic gold prices," said Jateen Trivedi, research analyst of commodity and currency at LKP Securities Ltd.
Silver futures for March delivery increased by Rs 204 or 0.22% to Rs 92,295 per kg.
Global Cues, Economic Data
Globally, Comex gold futures rose $10.20 per ounce or 0.37% to $2,769.40 per ounce.
"Gold prices continue to rise as the dollar weakens. Markets are worried after Trump delayed his promised trade tariffs on China, Mexico, and Canada, raising fears they may come next month sparking fears of a prolonged trade war," Abans Holdings' chief executive officer, Chintan Mehta, said.
Weak economic data — retail sales falling short of expectations and unemployment claims — has also added to the bullish outlook for gold, Mehta said.
These signs of economic strain have increased speculation that the US Federal Reserve may ease its hawkish stance and introduce more rate cuts this year, and boosting gold's appeal as a safe-haven asset, he added.
Silver Comex futures also traded 0.27% higher at $31.58 per ounce.
"Since there is a lot of uncertainty in the market about the tariffs that US President Trump plans to put on imports, the precious market is building momentum to hit record-high levels," Renisha Chainani, head of research at Augmont, said. "Over the past 10 years, the US trade deficit has almost doubled, rising from $500 billion to $850 billion in 2024."
(With PTI inputs)
