Gold prices in India surged to new record highs on Tuesday, with 10 grams of 99.9% purity gold reaching Rs 91,250 in Delhi, according to the All India Sarafa Association. This increase of Rs 500 followed a substantial Rs 1,300 rise the previous day. 99.5% purity gold also hit a record high of Rs 90,800 per 10 grams.
The surge is attributed to sustained buying by stockists and retailers, driven by strong international market trends. Analysts point to several factors fueling this rise:
- Geopolitical Uncertainty: Concerns over US President Donald Trump’s policies, potential US recession, and ongoing conflicts, particularly in the Middle East, are driving demand for gold as a safe-haven asset.
- US Federal Reserve Expectations: Weaker US economic data has increased expectations of multiple Federal Reserve interest rate cuts this year, making non-yielding assets like gold more attractive.
- Global Market Trends: Spot gold and Comex gold futures also reached record highs, exceeding $3,000 per ounce.
- Middle East Tensions: Continued instability in the Middle East, with US strikes on Yemen’s Houthis, is further fueling safe-haven demand.
- Chinese Economic Stimulus: China’s plans for additional economic stimulus are also contributing to the demand for gold.
- Federal Reserve Policy Meeting: Investors are closely monitoring the upcoming Federal Reserve policy meeting for guidance on future monetary policy decisions.
While gold prices soared, silver remained relatively stable at Rs 1,02,500 per kg, also a historic high.
Gold futures on the Multi Commodity Exchange (MCX) also reached a new peak of Rs 88,672.
