Gold prices surged ₹170 to reach a new record of ₹82,900 per 10 grams in the national capital on Thursday, marking the seventh consecutive session of gains.
According to the All India Sarafa Association, the precious metal had closed at ₹82,730 on Wednesday. The year-long rally has pushed gold up by ₹20,180, a 32.17% increase since February 2024, when it was priced at ₹62,720 per 10 grams.
Gold of 99.9% and 99.5% purity saw gains of ₹2,320 over the last week, with the former trading at ₹82,500 per 10 grams. In contrast, silver prices declined ₹500, ending the day at ₹93,500 per kg.
Bullion traders attributed the surge to heightened demand from jewellers and retailers and a positive global trend. In futures trading, February gold contracts on the MCX rose ₹19 to ₹79,583 per 10 grams. However, silver futures fell ₹422 to ₹91,522 per kg.
Saumil Gandhi, Senior Commodities Analyst at HDFC Securities, said gold prices faced resistance due to a recovery in the US dollar and Treasury yields, which capped further upside.
“The bullish momentum is driven by demand for safe-haven assets amid global uncertainties and inflationary pressures,” noted Renisha Chainani, Head of Research at Augmont Gold. She added that geopolitical factors, including remarks by US President Donald Trump, are fueling the rally. Trump’s announcement of potential 25% tariffs on Canada and Mexico has heightened trade tensions, adding to inflation concerns.
In international markets, Comex gold futures traded at $2,757.70 per ounce, down $13.20 or 0.48%. Silver futures on the Comex declined 1.03% to $31.10 per ounce. Chainani highlighted that Mexico, the largest silver producer, could face uncertainties if tariffs extend to its exports, further complicating market dynamics.
The market’s focus now shifts to the Federal Reserve’s upcoming policy meeting on January 29. Analysts, including Jateen Trivedi of LKP Securities, believe the Fed’s stance on inflation and interest rates will significantly influence bullion prices.
Chainani added, “If global trade conditions improve and tariffs are paused, gold prices could stabilize by mid-2025. Until then, urban and institutional investors are likely to hedge against uncertainties, keeping demand high.”