Gold and silver prices hit new record levels on Monday, rising by ₹1,300 each. This increase follows strong global trends, driven by uncertainty over US trade policies, possible tariff changes, and expectations of interest rate cuts by the US Federal Reserve.
Gold Prices Soar
According to the All India Sarafa Association, gold (99.9% purity) continued its upward trend for the fourth consecutive day, increasing by ₹1,300 to reach a new high of ₹90,750 per 10 grams. On Thursday, it was priced at ₹89,450 per 10 grams.
Similarly, gold with 99.5% purity also rose by ₹1,300, setting a record at ₹90,350 per 10 grams, up from ₹89,050 per 10 grams.
According to HDFC Securities’ senior analyst Saumil Gandhi, several factors have fueled this rally, including strong central bank purchases and global economic instability. The increasing demand for gold as a safe-haven asset is due to economic uncertainties caused by US trade policies.
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Since the beginning of the year, gold prices have increased by ₹11,360 (14.31%), rising from ₹79,390 per 10 grams on January 1 to ₹90,750 per 10 grams.
Gold futures for April delivery also saw a slight increase of ₹13, reaching ₹88,004 per 10 grams on the Multi Commodity Exchange (MCX). On Friday, gold had touched an all-time high of ₹88,310 per 10 grams on the commodities exchange.
Silver Hits Record High
Silver prices also surged ₹1,300 to reach an all-time high of ₹1,02,500 per kg, up from ₹1,01,200 per kg on Thursday.
Global Gold Prices
In international markets, spot gold prices increased by $14.48, reaching $2,998.90 per ounce. On Friday, gold had briefly crossed the $3,000 per ounce mark. Comex gold futures were also trading higher at $3,007 per ounce after hitting a record high of $3,017.10 per ounce on Friday.
Market Factors Affecting Prices
Chintan Mehta, CEO of Abans Financial Services Ltd, said gold prices remain near record highs due to expectations of further interest rate cuts by the US Federal Reserve, as inflation is slowing down.
Additionally, geopolitical tensions have contributed to the rise in gold prices. The US recently confirmed that it will continue airstrikes against Yemen’s Houthis to stop attacks on ships in the Red Sea, increasing concerns in the region.
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Investors are now closely watching the US retail sales data, set to be released later on Monday, and the Federal Reserve’s policy meeting starting Tuesday for further insights on interest rate changes.
