Silver prices also gained by Rs 500 to Rs 98,500 per kg. The white metal had traded flat at Rs 98,000 per kg on Friday.
New Delhi: The price of precious yellow metal continues to surge in India as it inched closer to the psychological mark of Rs 1 lakh per 10 grams in the national capital on Monday. According to the All India Sarafa Association, the yellow metal of 99.9 per cent purity surged Rs 1,650 to touch the level of Rs 99,800 per 10 grams. Its value had declined Rs 20 to close at Rs 98,150 per on Friday.
Similarly, gold of 99.5 per cent purity bounced Rs 1,600 to hit a fresh peak of Rs 99,300 per 10 grams in the local markets. It had fallen marginally to settle at Rs 97,700 per 10 grams in the previous market close.
Silver Prices Surge Too
Silver prices also gained by Rs 500 to Rs 98,500 per kg. The white metal had traded flat at Rs 98,000 per kg on Friday.
“This year, gold and silver prices have experienced significant movements due to ongoing trade tensions, rate cut expectations, geopolitical uncertainties and weakening dollar. So far, gold has soared over 25 per cent, including a 6 per cent gain since the April 2 tariff announcement by the US administration,” Satish Dondapati, Fund Manager at Kotak Mahindra AMC, said.
Gold Futures Hit All-Time High
On the Multi Commodity Exchange, gold futures for June delivery jumped Rs 1,621, or 1.7 per cent, to touch a fresh high of Rs 96,875 per 10 grams.
In the international markets, spot gold rose to hit a fresh peak of USD 3,397.18 per ounce. Later, it pared some gains to trade at USD 3,393.
49 per ounce.
Globally, gold futures breached the psychological USD 3,400-mark for the first time ever, rising USD 80 per ounce, or 2.4 per cent.
Why are gold prices rising?
According to experts, a weak dollar and uncertainties over the US-China trade war are driving demand for the precious metal.
“The rally is being supported by escalating tariff tensions, concerns over the US economic outlook, and the looming US debt crisis. Continued buying from China, global central banks, and institutional investors has added momentum to the bullish sentiment. Technically, as long as Comex holds above $3,250 and MCX above Rs 91,000, the uptrend remains intact. Any dips towards Rs 93,000 in MCX may offer fresh buying opportunities. However, given the elevated levels, speculators are advised to maintain low-risk positions to manage potential volatility.” Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.
Similarly, spot silver in the Asian market hours rose nearly 1 per cent to USD 32.85 per ounce.
