New Delhi: Gold prices in India surged to a fresh all-time high of Rs 89,450 per 10 grams on Thursday, reflecting a strong global rally in the precious metal. This sharp rise of Rs 600 from the previous close of Rs 88,850 was driven by safe-haven demand and favorable macroeconomic factors in the international market.
Gold Prices Reclaim Historic Levels
Gold of 99.9 per cent purity soared to Rs 89,450 per 10 grams, while 99.5 per cent purity gold also touched an all-time high of Rs 89,050 per 10 grams, rising by Rs 600. This marks a significant jump from Wednesday’s levels when these variants were priced at Rs 88,850 and Rs 88,450, respectively.
Notably, this rally comes just weeks after the yellow metal first touched the Rs 89,450 mark on February 20, reflecting sustained buying interest and strong investor sentiment.
Silver Follows Suit, Hits Five-Month High
Silver prices also registered a substantial jump, surging by Rs 1,000 to Rs 1,01,200 per kg. This marks the highest level for silver in nearly five months, following a previous close of Rs 1,00,200 per kg.
Futures Market Sees Record Highs
On the Multi Commodity Exchange (MCX), gold futures for April delivery climbed by Rs 210, or 0.24 per cent , to reach an all-time high of Rs 86,896 per 10 grams. The sharp gains indicate growing investor interest in gold as a hedge against economic uncertainties.
Global Trends Driving the Surge
Gold’s domestic price movement mirrors the strength seen in global markets. Spot gold prices rose by USD 11.67, or 0.40 per cent , to USD 2,946.44 per ounce. Analysts attribute the gains to heightened safe-haven demand amid global economic uncertainties and softer-than-expected U.S. inflation data, which has increased expectations of potential monetary easing by the Federal Reserve.
“Gold prices surged to a new record high in the domestic market, while in the international market, spot gold rallied to near-record highs buoyed by safe-haven demand and cooler-than-expected US consumer inflation data. This has reinforced the possibility of the Federal Reserve cutting interest rates this year,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.
Outlook: Will Gold Continue to Rally?
Traders and investors are now keenly watching upcoming U.S. macroeconomic data, including weekly jobless claims and the Producer Price Index (PPI/Core PPI), which could provide further insights into inflation trends. If inflationary pressures continue to ease, it may strengthen the case for a Fed rate cut, further boosting gold prices.
Given the current global economic environment, analysts believe that gold could continue its upward momentum in the near term, with silver likely to follow suit.
