Gold prices in the national capital soared to an all-time high of ₹91,950 per 10 grams on Wednesday, marking a ₹700 increase from the previous session, as per agency report. The sharp rise was attributed to sustained demand from jewelry retailers ahead of the wedding season and global economic uncertainty, particularly concerns over the US economy and rising geopolitical tensions in West Asia.
In the previous trading session, 99.9 percent pure gold had closed at ₹91,250 per 10 grams, while the 99.5 percent purity gold rose by ₹700 to touch a record ₹91,500 per 10 grams. Market analysts suggested that increased buying by local jewelers to meet festive and wedding season demand, coupled with a strong trend in international markets, pushed gold prices to their highest levels this year.
Silver prices also witnessed a significant jump, surging by ₹1,000 to a record ₹1,03,500 per kilogram, compared to Tuesday’s closing price of ₹1,02,500 per kilogram.
According to Jatin Trivedi, Vice President of Research for Commodities and Currencies at LKP Securities, the overall trend in gold prices remained bullish but traded within a narrow range ahead of the much-anticipated US Federal Reserve policy review and statement later in the day.
In the international market, spot gold climbed 0.15 percent to reach $3,039.22 per ounce, briefly touching a session high of $3,045.39 per ounce.
Chintan Mehta, CEO of Abans Financial Services Ltd, pointed out that escalating tensions in West Asia and concerns over trade wars under Donald Trump’s administration have fueled global economic uncertainty. This, in turn, has driven demand for gold as a safe-haven asset, pushing prices to record highs.
Mehta further highlighted that the prevailing uncertainty has led central banks worldwide to stockpile gold at unprecedented levels. Additionally, investments in gold exchange-traded funds (ETFs) have surged, with February alone witnessing a record inflow of $9.4 billion.
According to Saumil Gandhi, Senior Commodity Analyst at HDFC Securities, traders are closely monitoring the outcome of the Federal Reserve meeting. However, he noted that if economic conditions improve later in the year, market sentiment towards gold could shift accordingly.
