Gold jumps ₹400, surpasses ₹85,000-mark for first time; What’s behind the rally? | Stock Market News

Gold prices surged by ₹400, reaching a new all-time high of ₹85,300 per 10 grams in the national capital on Monday, driven by sustained demand from jewellers and stockists, according to the All India Sarafa Association.

Traders attributed the rise to the sharp depreciation of the rupee and strong trends in international markets, which pushed gold rates to record levels.

Gold with 99.9% purity had closed at ₹84,900 per 10 grams on Saturday, while 99.5% purity gold continued its upward trend for the fourth straight session, climbing ₹400 to ₹84,900 per 10 grams. In the previous trading session, it had settled at ₹84,500 per 10 grams.

Meanwhile, silver extended its rally for the fifth consecutive session, gaining ₹300 to reach ₹96,000 per kg on Monday, up from ₹95,700 per kg in the previous close.

On Monday, the rupee tumbled 55 paise to settle at a record low of 87.17 (provisional) against the US dollar, as global market sentiment weakened following the Trump administration’s imposition of tariffs on Canada, Mexico, and China.

Meanwhile, in MCX futures trading, gold contracts for April delivery rose by ₹461, or 0.56%, reaching ₹82,765 per 10 grams.

What’s behind the rally?

“Gold rallied positively on MCX. Participants increased gold allocations as concerns over a potential Trade War 2.0 from the US triggered safe-haven demand,” Jateen Trivedi, VP Research Analyst of Commodity and Currency, LKP Securities, said.

On Saturday, gold futures for April delivery surged by ₹1,127, reaching an all-time high of ₹83,360 per 10 grams as Union Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26.

Meanwhile, silver futures for March delivery rose by ₹436, or 0.47%, to ₹93,650 per kg.

On the global front, Comex gold futures declined by $7.50 per ounce, or 0.26%, to $2,827.50 per ounce.

“Gold resumed trading on a weaker note, pressured by the strong US dollar and long liquidation. The US dollar surged to a three-week high following US President Donald Trump’s setting tariffs over the weekend,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

On Friday, gold futures for April hit an all-time high of USD 2,862.90 per ounce in the international market.

This week is crucial for commodities with US macroeconomic data — including JOLTs job openings, ISM services, ADP employment and non-farm payroll — on cards, which will provide trajectory for the bullion prices, Praveen Singh, Associate VP, Fundamental Currencies and Commodities, Mirae Asset Sharekhan, said.

Comex silver futures in the Asian market hours traded 0.50 per cent lower at USD 32.10 per ounce.