Gold prices soared Rs 2,200 to hit a fresh peak of Rs 1,16,200 per 10 grams in the national capital on Monday, buoyed by strong global cues as investors awaited key observations from US Fed officials for policy direction.
According to the All India Sarafa Association, the precious metal of 99.9 per cent purity had closed at Rs 1,14,000 per 10 grams on Friday. In the local bullion market, gold of 99.5 per cent purity rallied Rs 2,150 to hit a record high of Rs 1,15,650 per 10 grams (inclusive of all taxes). It had settled at Rs 1,13,500 per 10 grams in the previous market session.
"Both gold and silver traded at record levels in the domestic markets, tracking the bullish trend in international markets. A dovish signal from the US Federal Reserve (Fed) suggests that two additional rate cuts are likely by the end of this year, which could limit gains in the US dollar and Treasury yields while bolstering precious metal prices.
A strong inflow into exchange-traded funds as well as continued interest from central banks have also led to the rise in bullion prices. The precious metal prices have added Rs 37,250 per 10 grams or 47.18 per cent in the current calendar year, climbing from Rs 78,950 per 10 grams on December 31, 2024.
Also read: New high for gold as prices surge ₹1,800
Meanwhile, silver prices skyrocketed by Rs 4,380 to hit an all-time high of Rs 1,36,380 per kilogram (inclusive of all taxes) on Monday. The white metal had ended at Rs 1,32,000 per kg on Friday, as per the Association. So far this year, silver prices have zoomed Rs 46,680 per kilogram or 52.04 per cent, rallying from Rs 89,700 per kg on December 31, 2024.
On the global front, spot gold rose more than 1 per cent to hit a record peak of US $3,728.43 per ounce as investors await remarks from several Federal Open Market Committee (FOMC) officials and Fed Chair Jerome Powell's key speech on Tuesday for additional policy guidance.
Spot silver, on the other hand, was trading 1.19 per cent higher at US $43.61 per ounce. Strong fundamentals supported silver prices with tight supply helping maintain upward momentum. On the demand side, robust consumption from the solar, electric vehicle and electronics sectors provided additional support.
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