Gold prices soared to a fresh record high of Rs 82,900 per 10 grams in the national capital on Thursday, rising by Rs 170. This surge was driven by a positive global market trend, according to the All India Sarafa Association. The precious metal had closed at Rs 82,730 per 10 grams on Wednesday.
In the past year, gold has seen a significant rise of Rs 20,180, or 32.17%, from Rs 62,720 per 10 grams on February 23, 2024, to its current price of Rs 82,900 per 10 grams.
For the seventh consecutive session, gold of 99.5% purity appreciated by Rs 170, reaching an all-time high of Rs 82,500 per 10 grams. The metal had closed at Rs 82,330 per 10 grams in the previous session. Over the last seven trading sessions, both gold of 99.9% and 99.5% purity increased by Rs 2,320 each.
Silver Prices Decline
On the other hand, silver prices experienced a drop of Rs 500, settling at Rs 93,500 per kg, down from Rs 94,000 per kg on Wednesday.
Bullion traders attributed the rise in gold prices to increased demand from jewelers and retailers, along with strong trends in international markets.
Futures Trade and Global Market Activity
In futures trade on Thursday, gold contracts for February delivery rose by Rs 19, or 0.02%, to Rs 79,583 per 10 grams on the Multi Commodity Exchange (MCX). Meanwhile, silver futures dropped by Rs 422, or 0.46%, to Rs 91,522 per kg.
In the international markets, Comex gold futures fell by USD 13.20, or 0.48%, to USD 2,757.70 per ounce.
Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, noted that gold prices traded flat-to-negative on Thursday, weighed down by a recovery in the U.S. dollar and rising Treasury yields. The U.S. Dollar index and Treasury yields rose after a positive close in the previous session, capping further gains in gold and prompting some selling.
U.S. Tariff Policies Impacting the Market
Renisha Chainani, Head of Research at Augmont, indicated that gold is nearing its record highs and could break them within the next couple of days. Chainani attributed the bullish momentum to remarks made by newly elected U.S. President Donald Trump regarding tariffs, particularly the potential 25% tax on imports from Canada and Mexico.
These proposed policies are seen as inflationary, which could prompt the Federal Reserve to maintain a hawkish stance and keep interest rates higher for longer to curb rising prices. Mexico, the top producer of silver, could be directly impacted if tariffs are applied to silver imports, although it remains unclear at this point.
Focus on Federal Reserve Meeting
Market participants are also closely watching the upcoming Federal Reserve policy meeting on January 29, as it could provide additional insights into the future direction of bullion prices, said Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities.
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