SRINAGAR: Gold prices surged by Rs 500 to touch an unprecedented Rs 1.20 lakh per 10 grams in the national capital, propelled by a weak dollar and market expectations of further rate cuts by the US Federal Reserve.
According to the All India Sarafa Association, as reported by NDTV, gold of 99.5 per cent purity extended gains for the fourth consecutive session, closing at Rs 1,19,400 per 10 grams, inclusive of taxes. On Monday, the yellow metal had already rallied Rs 1,500 to settle at Rs 1,19,500, marking a record run in the local bullion market.
Silver prices also continued their upward trajectory, climbing Rs 500 to reach a fresh high of Rs 1,50,500 per kilogram. This followed a sharp rally of Rs 7,000 a day earlier, when silver closed at Rs 1,50,000 per kg.
Market analysts attributed the surge to rising investor anxiety amid political and economic uncertainty in the United States. “Gold prices surged as investors turned jittery amid looming prospects of a US government shutdown after talks between President Trump and congressional leaders ended without agreement on short-term funding. This unsettled investors as it could delay the release of the official jobs report and complicate the Federal Reserve’s policy trajectory,” said Kaynat Chainwala, AVP Commodity Research at Kotak Securities, as reported by Times Of India.
The weakening dollar further lent support to bullion prices, with the dollar index slipping 0.10 per cent to 97.80 against a basket of major currencies.
Globally, however, bullion witnessed a mild correction as investors booked profits after record intraday highs. Spot gold declined 0.55 per cent to USD 3,813.14 per ounce, retreating from a record USD 3,871.72 earlier in the session. Spot silver fell 1.51 per cent to USD 46.22 per ounce in overseas markets.
“The yellow metal hit a fresh record high of USD 3,871 per ounce and is currently trading with a loss at USD 3,818 per ounce as traders booked profits on elevated levels,” noted Praveen Singh, Head of Commodities and Currencies at Mirae Asset ShareKhan.
With volatility in global markets and continuing concerns over US fiscal and monetary policies, bullion traders expect demand for safe-haven assets like gold and silver to remain firm in the near term.
