Gold prices in India hit a record high of Rs 96,450 per 10 grams due to strong demand and global tensions, especially the U.S.-China trade war.
Gold price violates Rs 96,000
According to the All India Sarafa Association, gold prices in India soared on Friday, with a historical height of Rs 96,450 in the national capital. This steep surge of Rs 6,250 was driven primarily by strong demand from local jewelers and retailers.
Experts say that rising global market prices have also played an important role. Tensions between the United States and China, especially after a new round of tariffs, pushing global investors toward gold, often seen as a safe investment in uncertain times.
On Wednesday, 99.9% of gold in purity was priced at Rs 90,200 per 10 grams. On Friday, 99.5% of gold in purity also soared, up 6,250 rupees to Rs 96,000 per 10 grams, compared with the previous closing price of Rs 89,750. This sharp increase came after gold prices continued to fall for four days. The market closed Thursday due to Mahavir Jayanti.
Silver also followed the trend. From Rs 93,200, it rose sharply by Rs 2,300 to Rs 95,500 per kilogram. The rise in silver prices also reflects a strong trend in the global market.
In the futures market, gold in June reached an all-time high of Rs 93,736 per 10 grams on the multi-commodity exchange (MCX).
Jateen Trivedi, vice president and research analyst at LKP Securities, said that despite the strength of the rupee strengthening the gold price of MCX, the gold price of MCX is still breaking records. He said the main reason was growing tensions between the United States and China, especially after the two countries put forward new tariffs on each other’s goods.
In the global market, live gold hit a new high of $3,237.39 per ounce before a slight decline. COMEX Gold Futures also hit a record level of $3,249.16 per ounce.
Kaynat Chainwala of Kotak Securities noted that demand for gold as a “safe haven” is increasing due to concerns about a global slowdown, the dollar weakens the dollar and growing geopolitical tensions.
UBS Investment Bank added that fears of recession, arcades and problems such as the global buying of gold a year over the past three years – suggesting that gold prices will continue to rise in the long run.
When the U.S. finds itself in the trade war, investors are shifting the focus away from the dollar, making gold more attractive.
