New Delhi: Gold prices rallied by Rs 1,950 to hit a fresh peak of Rs 1,27,950 per 10 grams in the national capital on Monday, driven by safe-haven demand amid renewed US-China trade tensions.
According to the All India Sarafa Association, the precious metal of 99.9 per cent purity had closed at Rs 1,26,000 per 10 grams on Friday.
In addition, gold of 99.5 per cent purity jumped by Rs 1,950 to touch an all-time high of Rs 1,27,350 per 10 grams (inclusive of all taxes). The yellow metal had settled at Rs 1,25,400 per 10 grams in the previous market session.
“Gold prices rose sharply higher as renewed US-China trade tensions reignited safe-haven demand,” Jateen Trivedi, VP research analyst, commodity and currency, LKP Securities, said.
The U.S. administration’s announcement of a 100% tariff hike on select Chinese products, coupled with China’s threat to restrict rare earth exports, has heightened global uncertainty and risk aversion.
“This geopolitical tension, along with sustained demand from investors seeking safety, continues to keep gold’s outlook bullish,” Trivedi said.
Silver prices too witnessed robust traction in the spot markets. The white metal bounced by ₹7,500 to hit a new record of ₹1,79,000 per kgram (inclusive of all taxes) on Monday. It had finished at ₹1,71,500 per kg on Friday, as per the Association.
In the international markets, spot gold rose nearly 2% to hit a fresh record high of $4,084.99 per ounce.
“Bullion prices have reached fresh and unprecedented levels, primarily driven by vigorous festive demand and structural supply and liquidity constraints.
“The surge in gold is principally catalysed by rising investment interest, set against a backdrop of enduring geopolitical tension and concerted accumulation by global central banks,” said Dilip Parmar, research analyst at HDFC Securities.
Traders contend that the current secular bull market for precious metals is poised for continued ascent, sustained by both investment momentum and seasonal buying cycles, Mr. Parmar added.
Spot silver increased by nearly 3% to hit a fresh all-time high of $51.74 per ounce in the overseas markets.
“Silver jumped more than 2 % to above $51 per ounce on Monday, marking a new all-time high as renewed U.S.-China trade concerns, political instability, and expectations of further U.S. rate cuts fuelled demand for safe-haven assets,” Jigar Trivedi, senior research analyst at Reliance Securities, said.
