Gold prices soared to a record high of Rs 88,500 per 10 grams in Delhi on Monday, driven by strong international prices and a weaker rupee, according to the All India Sarafa Association. This surge follows the precious metal surpassing USD 2,900 an ounce in global spot markets after the announcement of new tariffs on steel and aluminum imports. Increased buying by jewelers and retailers also contributed to the price rise.
Gold of 99.9% purity reached Rs 88,500 per 10 grams, while 99.5% purity gold hit Rs 88,100 per 10 grams. Silver prices also climbed, reaching Rs 97,500 per kg. Traders noted that investors are shifting away from riskier assets like stocks towards safe-haven investments due to global economic uncertainty.
On the MCX, gold futures for April delivery rose to a new high of Rs 85,828 per 10 grams, and the June contract reached Rs 86,636 per 10 grams. Silver futures for March delivery also advanced to Rs 95,965 per kg. Analysts pointed to the new tariffs on metal products as a key driver of these price increases, intensifying concerns about trade wars and prompting substantial bullion buying.
Globally, Comex gold futures rose to a record high of USD 2,932.69 per ounce, with spot gold exceeding USD 2,900 an ounce. Analysts observed that the increased fund flow into safe-haven assets, triggered by the tariff announcement, contributed to this record high. Comex silver futures also saw gains, approaching USD 32.76 per ounce.
A recent report suggests that gold prices have already reached numerous record highs this year, and that concerns about tariffs potentially leading to higher inflation and slower economic growth are fueling demand for safe-haven assets. The report further indicates that gold prices are expected to continue rising, with USD 3,000 per ounce now a distinct possibility.
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