Gold and silver prices showed no signs of cooling as both precious metals scaled fresh records in the national capital on Wednesday amid a weak US dollar and strong buying trends in global markets.
Silver extended its gains for the third straight day by soaring Rs 15,000, or 4.05 per cent, to touch an all-time high of Rs 3,85,000 per kg.
In the previous session, the white metal jumped sharply by Rs 40,500 to Rs 3,70,000 per kg, from Friday's close of Rs 3,29,500 per kg. Gold of 99.9 per cent purity also climbed by Rs 5,000, or 3 per cent, to a fresh peak of Rs 1,71,000 per 10 grams (inclusive of all taxes) in the bullion markets. It had settled at Rs 1,66,000 per 10 grams on Tuesday.
Gold and silver continue to witness a strong and sustained rally with bulls finding fresh catalysts almost every day to push prices higher. The uptrend is primarily supported by heightened geopolitical tensions and persistent trade-related uncertainties, which has boosted safe-haven demand for precious metals.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower, which further supported international bullion prices.
Gold gained USD 74.57, or 1.44 per cent, to USD 5,256.35 per ounce. In the intraday session, spot prices appreciated by USD 130.13, or 2.51 per cent, to touch a new record of USD 5,311.38 per ounce in the global markets.
Spot gold has extended its winning streak to the eighth consecutive day on Wednesday as it hit a fresh record high of USD 5,311 per ounce in the overseas markets amid weakness in US dollar. The greenback's slide to a four-year low followed disappointing US Conference Board consumer confidence data and signs of slowing job growth.
Spot silver prices went up by 0.12 per cent, to USD 112.22 per ounce in the overseas trade. On Monday, the metal surged by USD 14.42, or 14 per cent, to touch a new peak of USD 117.73 per ounce.
Analysts said that comments from US President Donald Trump, indicating comfort with a weaker dollar, along with expectations of rate cuts under a new Federal Reserve chair, have further reduced real yield support for the greenback. Adding to the uncertainty, renewed tariff threats and concerns over the Federal Reserve's independence have also amplified geopolitical and policy risk premiums, firmly underpinning gold and silver prices.
Also read: Gold, silver continue to scale new peaks
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