Gold prices hit fresh record high to ₹83,800 per 10 grams; What’s driving the rally? | Stock Market News

Gold prices continued their upward trend for the second consecutive session, reaching a new all-time high of ₹83,800 per 10 grams in the national capital on Thursday, driven by strong global cues.

As per the All India Sarafa Association, gold with 99.9% purity inched up by ₹50 to hit a fresh peak of ₹83,800 per 10 grams, surpassing its previous close of ₹83,750 per 10 grams on Wednesday.

Similarly, gold with 99.5% purity gained ₹50, setting a record high of ₹83,400 per 10 grams, compared to ₹83,350 per 10 grams in the prior session.

Meanwhile, silver surged by ₹1,150 to ₹94,150 per kg, up from its previous closing price of ₹93,000 per kg.

In futures trading, gold contracts for February delivery surged by ₹575 (0.72%) to reach an all-time high of ₹80,855 per 10 grams. Similarly, April contracts rose by ₹541 (0.67%), setting a new record of ₹81,415 per 10 grams on the Multi Commodity Exchange (MCX).

“Gold traded positively in MCX as participants positioned themselves against potential import duty hikes, following the 6 per cent cut in the previous Budget. A significant divergence was observed between Comex and MCX, with domestic gold rallying 2.5 per cent in the past week, while Comex gained only 0.50 per cent,” Jateen Trivedi, VP Research Analyst of Commodity and Currency, LKP Securities, said.

Silver futures for March delivery climbed by ₹1,050 or 1.14% to reach ₹92,916 per kg, up from the previous close of ₹91,866 per kg on Wednesday.

Meanwhile, in global markets, Comex gold futures surged by $23.65 per ounce or 0.84%, reaching a record high of $2,817.15 per ounce.

“Uncertainty around US President Donald Trump’s policy causes a new leg down in US Treasury yields, which helps gold prices continue their northward journey,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

Further, investors are still anxious about the economic consequences of Trump’s trade tariffs and protectionist policies, which continue to support the safe-haven precious metal, Gandhi added.

What’s driving the rally?

Investors are dumping riskier assets as they prefer safe haven amid global economic uncertainties. Against this backdrop, gold outshining other riskier asset classes like equities, traders said.

Comex silver futures in the Asian market hours also traded 2.06 per cent higher at USD 32.04 per ounce.

On Wednesday, the US Federal Reserve (Fed) kept the interest rates unchanged at 4.25-4.5 per cent as it is not in a hurry to cut rates. The Fed called the risks to its dual mandate of employment and inflation as finely balanced.

According to commodities experts, the US Treasury yields had a muted response to Fed Chair Jerome Powell’s commentary, suggesting that interest rates could remain higher for longer due to ongoing inflationary threats and a robust labour market, which helped gold prices.

“Traders now focus on key economic indicators, including GDP figures, jobs data, and pending home sales, for further insights into the US economy, especially given Powell’s emphasis that future rate decisions will remain data-dependent,” Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, said.