Gold, Silver Break All-Time Highs Amid US-China Tensions
Gold prices skyrocketed by ₹6,250 to reach an all-time high of ₹96,450 per 10 grams in the national capital on Friday, driven by strong local demand and surging international prices, according to the All-India Sarafa Association.
New Delhi: Gold prices skyrocketed by ₹6,250 to reach an all-time high of ₹96,450 per 10 grams in the national capital on Friday, driven by strong local demand and surging international prices, according to the All-India Sarafa Association.
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Heavy Local Demand and Global Factors Fuel Surge
Jewellers and retailers witnessed robust buying, pushing gold of 99.9% purity from its previous close of ₹90,200 to a historic high. Similarly, gold of 99.5% purity surged to ₹96,000 per 10 grams from ₹89,750, rebounding sharply after four consecutive sessions of losses.
Analysts attributed the spike to safe-haven buying as US-China trade tensions escalated, prompting investors to flock to gold.
Silver Follows Suit with Steep Rise
Silver prices also shot up, gaining ₹2,300 to close at ₹95,500 per kilogram, compared to ₹93,200 in the last session. This rally in silver mirrored the bullish trend in global precious metal markets.
The domestic bullion markets had remained closed on Thursday due to Mahavir Jayanti.
Gold Futures and Global Spot Prices at Historic Highs
On the Multi Commodity Exchange (MCX), gold futures for June delivery climbed by ₹1,703 to hit ₹93,736 per 10 grams — another record high.
“Gold extended its record-setting rally…defying rupee strength as geopolitical tensions and tariff battles between the US and China escalated,” said Jateen Trivedi, VP Research Analyst, LKP Securities.
In global markets, spot gold reached a fresh peak of $3,237.39 per ounce before settling slightly lower at $3,222.04. Meanwhile, Comex gold futures in Asian trading hours hit a lifetime high of $3,249.16 per ounce.
Trade War and Weak Dollar Drive Global Rally
Kotak Securities’ AVP, Commodity Research, Kaynat Chainwala, noted that Comex gold surged on the back of increased safe-haven demand amid renewed US-China trade tensions.
The US recently imposed tariffs up to 145% on Chinese imports, triggering retaliatory duties of up to 125% from Beijing. The rising conflict has rattled global markets and weakened the US dollar, further boosting gold’s appeal.
UBS Predicts Continued Rally Amid Economic Uncertainty
UBS, a leading investment bank, said gold is expected to maintain its upward trajectory due to persistent trade and economic concerns, stagflation risks, and global recession fears.
With the US at the center of ongoing geopolitical tensions, gold remains an attractive long-term investment. UBS also pointed out that central banks have been purchasing over 1,000 tonnes of gold annually in recent years as part of a global move to diversify reserves away from the US dollar.
