Gold prices skyrocketed by Rs 5,080 to hit an all-time high of Rs 112,750 per 10 grams in the national capital on Tuesday in line with strong global trends.
Photograph: Edgar Su/Reuters
The precious metal prices have added Rs 33,800 per 10 grams or nearly 43 per cent in the current calendar year, climbing from Rs 78,950 per 10 grams on December 31, 2024.
According to the All India Sarafa Association, gold of 99.9 per cent purity had closed at Rs 107,670 per 10 grams on Monday.
Silver prices also surged by Rs 2,800 to hit a record high of Rs 128,800 per kilogram (inclusive of all taxes) on Tuesday.
The precious metal had settled at Rs 126,000 per kg in the previous market session.
In global markets, gold reached an all-time high of $3,659.27 per ounce on Tuesday.
The precious metal later traded at $3,652.72 per ounce, up by $16.81, or 0.46 per cent.
Traders said weak labour market data in the US last week has raised the likelihood of monetary policy easing, which pushed investors towards safe-haven assets such as gold.
The dollar’s retreat further supported the upward momentum in bullion prices.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 97.29, lower by 0.17 per cent.
“Gold prices reached another record high on Tuesday, marking multiple all-time highs this year and surging more than 35 per cent in the international markets.
“Strong demand from central banks, inflows into exchange-traded funds, and speculation about rate cuts fuel this record-breaking rally in precious metals,” Saumil Gandhi, senior analyst – commodities at HDFC Securities, said.
Gandhi further stated that persistent demand for safe-haven assets is due to heightened geopolitical tensions, and concerns about the impact of US President Donald Trump’s tariffs on the global economy also contributed to this rally.
The yellow metal in global markets hovers around $3,659 per ounce, setting fresh records, said Trivesh D, Chief Operating Officer at brokerage firm Tradejini.
“The surge is more than just a reaction to US Fed optimism, it is the perfect storm of macro factors.
“The Fed (Federal Reserve) is widely expected to deliver two to three interest rate cuts in the next quarter, driving real yields lower and boosting gold’s appeal.
“The dollar’s dominance is being pressured as central banks continually diversify reserves away from US Treasury bond yields.
This trend has been ongoing for more than three years,” Trivesh D said.
He further stated that, with enduring geopolitical risk, from the extended Russia-Ukraine war to increasing tariff threats, the fundamental buying for safe-haven assets becomes more entrenched, he added.
According to Kaynat Chainwala, AVP Commodity Research at Kotak Securities, market participants will closely watch US inflation data later this week, which could influence the trajectory of rate cuts in Q4, although it’s unlikely to alter expectations for a September move.
