New Delhi, April 16 – Gold prices in the national capital soared by Rs 1,650 on Wednesday to reach a record high of Rs 98,100 per 10 grams, as investors globally rushed to secure safe-haven assets amidst escalating trade tensions between the United States and China. Silver prices also saw a sharp increase of Rs 1,900, closing at Rs 99,400 per kilogram.
According to the All India Sarafa Association, gold of 99.9 percent purity had closed at Rs 96,450 per 10 grams on Tuesday. With this latest surge, the price of gold has risen by Rs 18,710 or 23.56 percent since January 1, when it stood at Rs 79,390 per 10 grams. Gold of 99.5 percent purity also witnessed a similar rise, climbing to Rs 97,650 from the previous level of Rs 96,000 per 10 grams.
As per agency report, the sharp rally in precious metals was driven by a growing sense of global economic insecurity, triggered by fresh rounds of tariff hikes announced by the United States on Chinese imports. On Wednesday, the US administration imposed duties as high as 245 percent on most goods imported from China, significantly deepening trade friction between the two nations. Additionally, US President Donald Trump ordered a probe into whether tariffs should be imposed on critical minerals, heightening market unease.
The global spot gold price also reflected the surge, reaching a record high of USD 3,318 per ounce before settling slightly lower at USD 3,299.99. Spot silver rose by nearly two percent to USD 32.86 per ounce during Asian trading hours.
Analysts noted that the rally was further supported by weakness in the US dollar, with the dollar index falling below the 100 mark, approaching a three-year low. This depreciation of the dollar typically boosts gold’s appeal as a non-yielding asset. Market expectations of a potential interest rate cut by the US Federal Reserve also added momentum to the uptrend. Traders and investors were closely watching an upcoming speech by Fed Chair Jerome Powell for cues on the central bank’s policy stance.
Jatin Trivedi, Vice President (Research Analyst – Commodities and Currency) at LKP Securities, observed that gold had breached the Rs 95,000 mark on the Multi Commodity Exchange (MCX) while COMEX gold crossed USD 3,300, indicating strong investor appetite for secure investments amid global turmoil.
Kainaat Chanwala, Associate Vice President for Commodity Research at Kotak Securities, highlighted that fears surrounding the intensifying trade war, especially after the US government tightened export regulations against China, were pushing gold prices to new highs.
According to Soumil Gandhi, Senior Commodities Analyst at HDFC Securities, market participants are now shifting focus to key US macroeconomic indicators such as retail sales and industrial production data, which could provide further direction on the Federal Reserve's rate outlook.
This marks the second significant gold rally in April. On April 11, gold saw its biggest one-day jump of the year with a rise of Rs 6,250 in the domestic market. The consistent upward trajectory of both gold and silver signals heightened investor caution amid global economic uncertainty and policy shifts.
