New Delhi, April 21 – Gold prices in the national capital surged by Rs 1,650 on Monday, nearing the psychologically significant level of Rs 1 lakh per 10 grams. As per agency report, this sharp rise came amid increased demand driven by a weaker US dollar and ongoing uncertainties surrounding the US-China trade war.
According to the All India Sarafa Association, gold with 99.9 percent purity was priced at Rs 99,800 per 10 grams, a substantial leap from its previous close of Rs 98,150 on Friday. Similarly, gold of 99.5 percent purity rose by Rs 1,600 to hit a new peak of Rs 99,300 per 10 grams, up from Rs 97,700 in the last session.
Gold prices have jumped by Rs 20,850, or 26.41 percent, since December 31 last year. Silver also registered a notable increase, climbing Rs 500 to reach Rs 98,500 per kilogram, compared to a flat close of Rs 98,000 in the previous session.
Kotak Mahindra AMC fund manager Satish Dondapati noted that heightened trade tensions, expectations of interest rate cuts, geopolitical uncertainties, and a declining dollar have driven significant price volatility in both gold and silver. He highlighted that gold alone has witnessed a 25 percent rise so far this year, including a 6 percent gain following the US tariff announcement on April 2.
On the Multi Commodity Exchange (MCX), gold futures for June delivery rose by Rs 1,621 or 1.7 percent to a record Rs 96,875 per 10 grams.
In international markets, spot gold hit a new high of $3,397.18 per ounce before settling slightly lower at $3,393.49. Gold futures climbed over $80 or 2.4 percent to breach the $3,400 per ounce level for the first time, supported by tariff uncertainties, a weakening US dollar, and rising bond yields.
Pranav Mer, Vice President for Commodities and Currency Research at JM Financial Services, stated that gold prices continue to exhibit strong upward momentum due to these macroeconomic factors.
Meanwhile, in Asian trading hours, spot silver also gained nearly one percent, rising to $32.85 per ounce.
