Gold Prices Hit Record High, Surge by Rs 1,100 to Reach Rs 92,150 per 10g
Gold Prices Hit Record High, Surge by Rs 1,100 to Reach Rs 92,150 per 10g
Gold prices in India soared to a new peak on Friday, reaching Rs 92,150 per 10 grams after a sharp increase of Rs 1,100. The surge was driven by rising global precious metal prices, as reported by the All India Sarafa Association. On Thursday, the price of 99.9% purity gold had closed at Rs 91,050 per 10 grams. Since the beginning of FY25, gold prices have increased by 35%, or Rs 23,730, from Rs 68,420 per 10 grams on April 1, 2024.
Gold of 99.5% purity also reached an all-time high of Rs 91,700 per 10 grams on Friday, marking its third consecutive session of gains. The previous day’s closing price stood at Rs 90,600 per 10 grams.
Market Insights and Analysis
Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, noted, “Gold prices have continued their upward trajectory, hitting a new record high on Friday amid fears of an escalating global trade conflict and its economic repercussions.”
Meanwhile, silver prices also saw a notable rise, climbing by Rs 1,300 to nearly touch a record Rs 1,03,000 per kg, up from Thursday’s close of Rs 1,01,700 per kg. The white metal had previously hit its highest-ever price of Rs 1,03,500 per kg on March 19.
On the Multi Commodity Exchange (MCX), gold futures for April delivery gained Rs 542 to settle at Rs 88,926 per 10 grams. Jateen Trivedi, Vice President and Research Analyst for Commodity and Currency at LKP Securities, stated, “Spot gold prices remain elevated as ongoing tariff concerns continue to drive strong buying interest.”
Global Impact and Market Drivers
The upcoming April 2 reciprocal tariffs, expected to be imposed by US President Donald Trump, have heightened market uncertainty. Globally, spot gold reached a new record of $3,086.08 per ounce, while Comex gold futures also peaked at $3,124.40 per ounce.
According to Kotak Securities, the recent surge in Comex gold futures is largely driven by trade war tensions, particularly concerns over US tariffs on auto imports and potential levies against the EU and Canada. These uncertainties are fueling demand for gold as a safe-haven asset.
Gold prices have surged approximately 8.2% this month, supported by geopolitical tensions and strong central bank purchases. Spot silver in the Asian market remained stable at $34.42 per ounce, while Comex silver futures recorded a 0.7% gain, reaching $35.33 per ounce.
Traders believe the market volatility stems from growing concerns over the economic impact of these tariffs, which could lead to inflation and slow global economic growth, thereby boosting demand for gold. Chintan Mehta, CEO of Abans Financial Services, remarked, “Investors are closely monitoring remarks from Federal Reserve officials this week to gauge the central bank’s stance on monetary policy.”
Additionally, the US Personal Consumption Expenditures (PCE) data, set for release on Friday, will be a key focus for market participants. This metric, which serves as the Federal Reserve’s preferred inflation indicator, is expected to influence future policy decisions.
