In Delhi, gold prices surged by Rs 800 to an all-time high of Rs 1,03,420 per 10 grams on Friday. This marks a significant increase, with the price of gold of 99.9% purity adding Rs 3,600 in the previous session alone to close at a new peak of Rs 1,02,620 per 10 grams. Over the last five sessions, gold prices have climbed by a total of Rs 5,800 per 10 grams.
Several factors are contributing to this rally:
- US Tariffs on Swiss Gold: The US has imposed a 39% tariff on one-kilo and 100-ounce gold bars imported from Switzerland, which is a major refining hub. This move has disrupted a key supply route, creating uncertainty and fueling a demand for gold as a safe-haven asset.
- Weak Economic Data: According to analysts, weak macroeconomic data from the US has increased expectations that the Federal Reserve will lower interest rates as early as September. Lower interest rates typically make non-yielding assets like gold more attractive to investors.
- Geopolitical Tensions: Global economic and political uncertainty, including trade tensions, is driving investors toward safe-haven assets.
Silver prices are also on the rise, gaining Rs 1,000 to reach Rs 1,15,000 per kilogram. The white metal has increased by a total of Rs 5,500 per kilogram over the last five sessions.
On the Multi Commodity Exchange (MCX), gold futures for October contracts hit a new peak of Rs 1,02,250 per 10 grams, while December contracts rallied to a lifetime high of Rs 1,03,195 per 10 grams.
In the international market, spot gold is trading at $3,388.56 per ounce. It reached a record high of $3,500.33 per ounce in New York, with the Bank of England’s recent interest rate cut and higher-than-expected jobless claims in the US further boosting its value.
