Gold Prices Soar, Reach Rs 99,750 Per 10 Grams. See What Led To The Rally

Gold prices witnessed a sharp spike in the national capital on Tuesday, continuing a three-day rally driven by robust buying activity and global uncertainties. According to the All India Sarafa Association, prices for 99.9 per cent purity gold surged by Rs 2,400 to reach Rs 99,750 per 10 grams, up from Rs 97,350 recorded on Monday.

Jewellers continued to stock up amid rising demand, pushing prices upward. Market participants also monitored the broader macroeconomic environment, with multiple geopolitical triggers strengthening gold’s appeal as a safe-haven asset, reported PTI.

Safe-Haven Demand Grows Amid Global Concerns

International factors  played a key role in driving up gold prices, as renewed fears around trade and geopolitical instability returned to the forefront. "Gold prices edged higher as safe-haven demand returned following President Donald Trump's announcement of fresh tariff plans. The proposed measures include duties on pharmaceutical imports and a steep 100 per cent tariff on movies produced outside the United States -- a move that stoked concerns over renewed trade tensions and their potential impact on global growth," said Chintan Mehta, Chief Executive Officer at Abans Financial Services.

Adding to investor caution were the ongoing conflicts around the globe, including the prolonged Russia-Ukraine war, tensions in the Middle East, and rising friction between India and Pakistan. These developments collectively bolstered gold’s position as a risk-averse investment. “Additionally, weakness in the US dollar also benefits the precious metals and contributes to the uptrend,” noted Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities.

Also Read : Trump Wants 'Movies Made In America Again', But How Will The Tariffs Work?

Silver Follows Gold’s Uptrend

The rally wasn’t limited to gold. Silver prices also saw a notable increase, rising Rs 1,800 to Rs 98,500 per kg, according to the Sarafa Association. In global markets, spot silver advanced 1.64 per cent to $33 per ounce.

On the Multi Commodity Exchange, the most traded June contract for gold futures jumped Rs 1,951 or 2.06 per cent to settle at Rs 96,600 per 10 grams. Globally, spot gold prices surged $45.65 or 1.37 per cent to $3,379.77 per ounce, climbing past the $3,350 mark as investors sought shelter from rising geopolitical risks.

Market attention now shifts to the US Federal Reserve’s FOMC policy meeting on Wednesday and Chair Jerome Powell’s comments on inflation and growth outlook.

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