NEW DELHI: Gold prices jumped Rs1,000 on Wednesday to cross the key Rs1 lakh per 10 gram threshold in the national capital, as heightened tensions between India and Pakistan triggered a wave of safe-haven buying.
According to the All India Sarafa Association, gold of 99.9 per cent purity climbed to Rs1,00,750 per 10 grams, compared with Tuesday’s close of Rs99,750. Gold of 99.5 per cent purity also surged, rising Rs1,050 to Rs1,00,350 per 10 grams from Rs99,300 in the previous session.
The rally in gold price came after Indian armed forces carried out missile strikes on nine terror camps across Pakistan and Pakistan-occupied Kashmir in retaliation for the Pahalgam terror attack. The strikes targeted key bases of Jaish-e-Mohammad in Bahawalpur and Lashkar-e-Taiba in Muridke.
The yellow metal had earlier scaled a record high of Rs1,01,600 per 10 grams on April 22, when it gained Rs1,800 in a single session.
Silver prices also moved higher, advancing Rs440 to Rs98,940 per kg, up from Rs98,500 on Tuesday.
Global markets
In global markets, however, spot gold declined by 1.8 per cent or 62.12 dollars to 3,369.65 dollars per ounce, as hopes of progress in US-China tariff talks eased immediate geopolitical concerns and prompted a shift back into risk assets.
“Gold prices softened globally on signs of diplomatic engagement between major economies, but the broader geopolitical backdrop – ranging from the Middle East to Ukraine, and now India-Pakistan – is keeping investor appetite for gold intact,” said Chintan Mehta, Chief Executive Officer, Abans Financial Services.
Spot silver in international trade fell 1.24 per cent to 32.81 dollars per ounce.
Kaynat Chainwala, AVP of Commodity Research at Kotak Securities, said market participants are now focused on the upcoming US Federal Reserve’s policy decision. “The Fed is expected to hold rates steady despite calls from President Donald Trump for a rate cut to spur growth. Investors will be watching Fed Chair Jerome Powell’s remarks closely for cues on the path of monetary policy,” she added.
