Gold prices hit record high, breach Rs 96,000 level
Silver also registered a steep rise of Rs 2,300 to Rs 95,500 per kg, largely in tandem with global trends
New Delhi: Gold prices surged by Rs 6,250 to hit a record high of Rs 96,450 per 10 grams in the national capital on Friday due to heavy demand from local jewellers and retailers, according to the All India Sarafa Association.
Analysts said the precious metal hitting lifetime high levels in the international markets on strong safe-haven demand amid escalating US-China trade tensions boosted the domestic prices.
Also Read
On Wednesday, the yellow metal of 99.9 per cent purity had closed at Rs 90,200 per 10 grams.
Rebounding after four days of sharp fall, gold of 99.5 per cent purity surged by Rs 6,250 to touch an all-time high of Rs 96,000 per 10 grams against the previous close of Rs 89,750 per 10 grams.
Silver prices also registered a steep rise of Rs 2,300 to Rs 95,500 per kg, largely in tandem with global trends. The white metal had closed at Rs 93,200 per kg in the previous market close.
Bullion markets were closed on Thursday on the occasion of Mahavir Jayanti.
Meanwhile, gold futures for June delivery climbed by Rs 1,703 to hit yet another lifetime high of Rs 93,736 per 10 grams on the Multi Commodity Exchange.
“Gold extended its record-setting rally…to hit fresh lifetime highs near Rs 93,500 on MCX, defying rupee strength as geopolitical tensions and tariff battles between the US and China escalated further,” Jateen Trivedi, VP Research Analyst of Commodity and Currency, LKP Securities, said.
In the international markets, spot gold jumped to a fresh peak of $3,237.39 per ounce. Later, it slipped to $3,222.04 per ounce. Additionally, Comex gold futures in the Asian market hours rose to hit a record high of $3,249.16 per ounce.
Kotak Securities’ AVP- Commodity Research, Kaynat Chainwala, said Comex gold prices jumped to a record high as safe-haven demand rose amid escalating US-China trade tensions. Prices had earlier crossed $3,200 per ounce on April 2, but later retreated on profit-taking.
On Thursday, the Trump administration imposed tariffs of up to 145 per cent on Chinese goods, prompting retaliatory duties of up to 125 per cent by levied by China. The heightening concerns of deeper retaliation and a looming global economic slowdown weakened the US dollar by slipping below the 100-mark, further supporting bullion prices, Chainwala said.
According to investment banking company UBS, the collection of ongoing concerns in financial markets, such as trade and economic uncertainties, fears of stagflation, recession risks, and geopolitical tensions — will likely continue to burnish gold’s allure.
With the US at the heart of the ongoing trade war, for the long term, gold prices are quite likely to rise.
The global move to diversify reserves away from the US dollar that has seen central banks buy gold at a record pace of over 1,000 tonnes annually over the last three years is unlikely to be impeded by the trade war, the global wealth management firm said in a note.
