Gold prices surged by Rs 600, reaching Rs 78,050 per 10 grams in the national capital on Tuesday, driven by a strong trend in the global market, according to the All India Sarafa Association.
The precious metal, with a purity of 99.9 percent, closed at Rs 77,450 per 10 grams on Monday, as increased purchasing by local jewelers and retailers for wedding festivities boosted demand.
Similarly, silver also surged by Rs 1,500 to Rs 93,500 per kg, compared to the previous closing price of Rs 92,000 per kg on Monday.
Additionally, the price of 99.5 percent pure gold increased by Rs 600 to reach Rs 77,650 per 10 grams. It had ended at Rs 77,050 per 10 grams in the previous session.
In futures trading on the MCX, gold contracts for December delivery rose by Rs 615, or 0.82 percent, to trade at Rs 75,662 per 10 grams.
Deveya Gaglani, senior research analyst at Axis Securities, said, “MCX gold prices experienced a rebound in the last session after several days of underperformance, largely due to a pullback in the dollar index.”
“Gold prices moved higher as geopolitical tensions escalated, and renewed fears surrounding nuclear risks in the ongoing Russia-Ukraine conflict drove a surge in safe-haven demand, boosting gold’s appeal,” said Jateen Trivedi, VP research analyst – commodity and currency at LKP Securities.
Silver futures for December delivery on the Multi Commodity Exchange (MCX) increased by Rs 677, or 0.75 percent, reaching Rs 91,190 per kg.
Comex gold futures rose $19.50 per ounce, or 0.75 percent, to $2,634.10 per ounce in the international markets. Similarly, Comex silver futures also quoted 0.79 percent higher at $31.47 per ounce during Asian trading hours.
Saumil Gandhi, senior analyst – commodities at HDFC Securities, stated that gold surged to a one-week high on Tuesday, rising above $2,615 per ounce as the rally was driven by a pullback in US Treasury yields, a weaker dollar, and increased demand for safe-haven assets.
According to a report by Goldman Sachs, the agency has forecast a significant rise in precious metal prices for the upcoming year, as increased central bank purchases and anticipated cuts in US interest rates fuel this prediction.
Goldman Sachs has reiterated its target of $3,000 per ounce by December 2025, as the main driver behind this forecast is higher demand from central banks, while a cyclical boost is expected from increased flows into exchange-traded funds as the Federal Reserve implements interest rate cuts.
Gold has seen a strong rally this year, setting multiple records, but it faced a pullback following Donald Trump’s victory in the US Presidential elections, which led to a stronger dollar. The precious metal’s rise has been supported by increased buying from the official sector and the US Federal Reserve’s shift toward a more accommodative monetary policy.
The report also suggested that the Trump administration could provide support for bullion in the near future.