NEW DELHI: Gold and silver prices hit fresh record highs on Monday, rallying Rs1,300 each, tracking firm trends in global markets amid uncertainty over US tariffs, trade tensions, and growing expectations of monetary policy easing by the Federal Reserve.
According to the All India Sarafa Association, gold of 99.9 per cent purity extended gains for the fourth consecutive session, surging Rs1,300 to a new peak of Rs90,750 per 10 grams.
It had settled at Rs89,450 per 10 grams on Thursday. Gold of 99.5 per cent purity also jumped Rs1,300 to hit an all-time high of Rs90,350 per 10 grams, up from its previous close of Rs89,050 per 10 grams.
Saumil Gandhi, senior analyst, commodities at HDFC Securities, attributed the record-breaking rally to multiple factors, including strong central bank buying and global economic instability.
He noted that demand for safe-haven assets had risen due to economic uncertainty stemming from US trade and economic policies.
So far this year, gold prices have climbed Rs11,360 or 14.31 per cent, from Rs79,390 per 10 grams on January 1 to Rs90,750 per 10 grams.
Silver prices
Silver prices also soared Rs1,300 to an all-time high of Rs102,500 per kg, up from Rs101,200 per kg on Thursday.
Meanwhile, gold futures for April delivery inched up Rs13 to Rs88,004 per 10 grams on the Multi Commodity Exchange.
On Friday, the yellow metal had touched a record high of Rs88,310 per 10 grams on the commodities bourse.
In international markets, spot gold rose $14.48 to $2,998.90 per ounce, having breached the psychological $3,000 mark on Friday.
Comex gold futures were also trading higher at $3007 per ounce after reaching a record $3017.10 per ounce on Friday.
“Gold prices remain near record highs as expectations of further US Fed rate cuts strengthen, driven by cooling inflation,” said Chintan Mehta, chief executive officer at Abans Financial Services Ltd.
Geopolitical risks
Mehta also pointed to geopolitical risks supporting bullion prices, citing US confirmation that it would continue strikes against Yemen’s Houthis until attacks on Red Sea shipping cease, escalating regional tensions.
“Investors are closely watching the US retail sales data due later on Monday, along with the Federal Open Market Committee (FOMC) meeting starting Tuesday for insights into the Fed’s monetary policy stance,” he added.
