NEW DELHI, Feb 24: Gold prices surged by Rs 350, reaching approximately Rs 89,100 per 10 grams in the national capital on Monday, influenced by strong global trends, as reported by the All India Sarafa Association.
The 99.9% pure gold had closed at Rs 88,750 per 10 grams on Friday.
Meanwhile, gold with 99.5% purity also saw an increase of Rs 350, now priced at Rs 88,700 per 10 grams, up from the previous rate of Rs 88,350.
“Gold experienced a slight gain on Monday due to ongoing geopolitical and trade tensions, which have heightened the demand for safe haven assets amid uncertainty,” remarked Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities.
Last week, gold with 99.9% and 99.5% purity reached new highs of Rs 89,450 and Rs 89,050 per 10 grams, respectively.
In contrast, silver prices remained stable at Rs 1 lakh per kg.
Gandhi further noted that the decline of the US dollar has provided additional support for gold prices. The dollar index has fallen for three consecutive weeks, trading lower against a backdrop of mixed macroeconomic data from the US.
In futures trading on the MCX, gold contracts for April delivery rose by Rs 118, reaching Rs 86,128 per 10 grams.
“Gold traded within a limited range and registered minor gains, buoyed by Comex gold remaining above USD 2,925. The weaker rupee also contributed to supporting MCX gold,” stated Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities.
The April delivery futures for Comex gold were quoted higher at USD 2,954.71 per ounce in international markets.
Globally, spot gold increased by USD 5.50, reaching USD 2,941.55 per ounce.
“Gold prices are maintaining levels close to all-time highs as the dollar weakens amid rising geopolitical and economic uncertainties,” commented Chintan Mehta, CEO of Abans Holdings.
The uptrend in gold prices is likely to continue, fueled by strong safe-haven demand, with central banks around the world continuing to stockpile gold as a hedge against economic and policy uncertainties, Mehta added.
Conversely, during Asian market hours, silver futures recorded a 0.43% decline at USD 33.20 per ounce.
Kotak Securities indicates that traders are closely monitoring the upcoming Personal Consumption Expenditures (PCE) data release, which is expected to influence the US Federal Reserve’s policy trajectory and, in turn, the investment appeal of bullion. (PTI)
