Gold continues to shine, jumps to ₹84,900 per 10 grams; What’s driving the rally? | Stock Market News

Gold prices reached a new all-time high of ₹84,900 per 10 grams in the national capital on Friday, driven by strong domestic demand and favorable global factors, according to the All India Sarafa Association.

The 99.9% pure gold continued its upward trend for the third consecutive session, rising by ₹1,100 to set the new record at ₹84,900 per 10 grams.

Since January 1, the yellow metal has surged by ₹5,510, or 7%, from ₹79,390 per 10 grams in the local market.

Gold with 99.5% purity also saw a rise of ₹1,100, reaching a new peak of ₹84,500 per 10 grams, up from ₹83,400 per 10 grams in the previous session.

Silver also saw an increase of ₹850, reaching ₹95,000 per kg on Friday, compared to ₹94,150 per kg on Thursday.

“The bullish momentum in precious metals continues, with spot gold reaching a new all-time high and surpassing the USD 2,800 threshold in the intraday trade on Friday, while the spot gold price in the Delhi market crossed the ₹84,000-mark,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

In futures trading, gold contracts for February delivery rose by ₹487, or 0.6%, reaching a new record high of ₹82,210 per 10 grams on the Multi Commodity Exchange (MCX). Similarly, the April contracts for the precious metal gained ₹371, or 0.45%, hitting a fresh peak of ₹82,415 per 10 grams.

“Gold traded positively while Comex remained flat as budget-driven premiums were observed in MCX gold, anticipating potential duty changes. If no changes occur, the premium may reduce on Budget day.,” Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, said.

Silver contracts for March delivery increased by ₹403, or 0.43%, reaching ₹93,849 per kg. Throughout the day, the white metal rose by ₹629, or 0.67%, to reach an intraday peak of ₹94,075 per kg on Friday.

Meanwhile, Comex gold futures for April delivery remained unchanged at $2,842.40 per ounce in global markets. During the session, the precious metal reached a new all-time high of $2,859.45 per ounce.

According to Kotak Securities, “Gold futures surged to a record high of USD 2,859.50 per ounce, surpassing the previous peak from October supported by investor demand for safe-haven assets following renewed tariff threats by the US leader against Mexico and Canada, and potential tariffs against China.”

Additionally, the stock broking firm noted that monetary policies from key central banks, including anticipated rate cuts by the European Central Bank, have supported gold’s upward trend.

In the Asian market hours, Comex silver futures for March contracts were up by 0.31%, priced at USD 32.60 per ounce.

“Market participants will be awaiting the US Personal Consumption Expenditures (PCE) inflation data later on Friday, which will be crucial to the metal as this is the US Fed’s preferred gauge of inflation,” Praveen Singh, Associate VP, Fundamental Currencies and Commodities at Mirae Asset Sharekhan, said.

Singh also mentioned that investors are waiting for the Union Budget for 2025-26, which will be presented by Finance Minister Nirmala Sitharaman on Saturday.