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The price of gold experienced a dramatic surge on Friday, reaching an unprecedented peak of Rs 84,900 per 10 grams in the national capital. This remarkable increase, driven by a potent combination of robust domestic demand and compelling global market trends, marks a new high for the precious metal. The All India Sarafa Association confirmed the record-breaking price, signifying a significant milestone in the gold market. This upward trajectory builds upon the previous two trading sessions, with Friday's jump of Rs 1,100 representing a continuation of a strong bullish trend. Since the beginning of January, gold prices have climbed impressively by Rs 5,510, or a notable 7%, from an initial value of Rs 79,390 per 10 grams. The 99.5% purity gold also mirrored this phenomenal rise, reaching a lifetime high of Rs 84,500 per 10 grams, up Rs 1,100 from the previous day's closing price. This sustained growth highlights a significant shift in market dynamics, impacting investors and consumers alike.
The concurrent rise in silver prices further underscores the overall bullish sentiment in the precious metals sector. Silver prices jumped by Rs 850 per kilogram, closing at Rs 95,000, a significant increase from Thursday's Rs 94,150 per kilogram. Market analysts attribute this positive momentum to various factors, including global economic uncertainty and increased investor demand for safe-haven assets. Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, noted the sustained bullish trend, highlighting that spot gold had even surpassed the USD 2,800 threshold in intraday trading on Friday, while the Delhi market crossed Rs 84,000. This international and domestic convergence demonstrates a widespread market belief in the continuing value of precious metals.
The futures market also reflected the bullish trend, with gold contracts exhibiting robust performance. February gold contracts on the Multi Commodity Exchange (MCX) appreciated by Rs 487, or 0.6%, reaching a new record high of Rs 82,210 per 10 grams. Similarly, April contracts increased by Rs 371, or 0.45%, to a new peak of Rs 82,415 per 10 grams. Jateen Trivedi, VP Research Analyst at LKP Securities, attributed this positive performance in the MCX gold market to budget-driven premiums, anticipating potential duty changes in the upcoming Union Budget. He suggested that if no changes occur, the premium might decrease on Budget day. The silver futures market mirrored this positive trend, with March delivery contracts advancing by Rs 403, or 0.43%, to Rs 93,849 per kg. The intraday high for silver reached Rs 94,075 per kg, demonstrating the strength of the market's upward trajectory. These robust figures in the futures market suggest a high level of confidence in the continued appreciation of precious metals.
International markets also contributed to the upward momentum. While Comex gold futures for April delivery traded relatively flat at USD 2,842.40 per ounce, it reached a new all-time high of USD 2,859.45 per ounce during the intraday session. Kotak Securities attributed this surge to increased investor demand for safe-haven assets, fueled by renewed tariff threats from the US against Mexico and Canada, and potential tariffs against China. This reflects a broader global context, where geopolitical uncertainty and trade tensions often drive investors towards the perceived safety and stability of gold. Further reinforcing this upward momentum, the expected rate cuts from major central banks, including the European Central Bank, have bolstered the appeal of gold as a secure investment. Comex silver futures also showed positive movement, quoting 0.31% higher at USD 32.60 per ounce in Asian market hours. The anticipation of the US Personal Consumption Expenditures (PCE) inflation data, considered the US Fed’s preferred gauge of inflation, and the upcoming Union Budget presented by Finance Minister Nirmala Sitharaman, are likely to significantly impact market sentiment in the coming days.
In conclusion, the record-breaking surge in gold and silver prices reflects a complex interplay of factors, including strong domestic demand, global market dynamics, geopolitical uncertainty, and anticipated monetary policy changes. The continued bullish momentum suggests that these precious metals are likely to remain a key focus for investors in the short term. The upcoming Union Budget and the release of key economic indicators will play a crucial role in shaping the future trajectory of these markets. The overall sentiment remains positive, with analysts predicting further potential for growth, although the level of this growth remains subject to various economic and geopolitical variables.
Source: Gold continues record breaking rally, jumps Rs 1,100 to all-time high Rs 84,900 per 10g