Gold prices surged by Rs 1,000, reaching a new record high of Rs 1,07,070 per 10 grams in the local markets, driven by expectations of Federal Reserve rate cuts, escalating geopolitical tensions, and increasing concerns regarding the US economy. The All India Sarafa Association reported that gold with 99.9% purity had previously closed at Rs 1,06,070 per 10 grams. In the Delhi market, gold with 99.5% purity gained Rs 1,000, marking its eighth consecutive session of increases to reach Rs 1,06,200 per 10 grams, up from Rs 1,05,200 in the last session. On the other hand, silver prices remained stable at Rs 1,26,100 per kilogram, maintaining its all-time high level according to the association.
Internationally, spot gold rose to an all-time high of $3,547.09 per ounce, while spot silver saw a slight decline of 0.11% to $40.84 per ounce in New York. Chintan Mehta, CEO of Abans Financial Services, noted that the demand for gold as a safe haven remains strong amid expectations of Federal Reserve easing, geopolitical tensions, and economic concerns in the US. He also mentioned that OPEC+ is set to hold a meeting soon, and ongoing worries about Russian oil supplies following a recent Ukrainian attack that affected 17% of Russian oil processing capacity could influence inflation, weaken the dollar, and support gold prices.
In futures trading, gold increased by Rs 407 to a new high of Rs 1,06,199 per 10 grams, continuing its winning streak for the 11th session as investors sought safe-haven assets amidst uncertainties related to US trade tariffs and weaknesses in global equities. Conversely, silver prices fell by Rs 435 to Rs 1,24,095 per kilogram in futures as traders took profits amid a declining trend in global markets, with December silver contracts dropping 0.35% on a volume of 20,244 lots.