Gold hits record high! Precious metal crosses Rs 91,000 as investors seek safe-haven amid Israel-Hamas tensions – The Times of India
Gold prices surged by Rs 500, reaching a record high of Rs 91,250 per 10 grams in the national capital on Tuesday. This increase was driven by continued buying from stockists and retailers, coupled with strong trends in international markets, according to the All India Sarafa Association.
On Monday, gold with 99.9% purity had already climbed by Rs 1,300, setting a new peak of Rs 90,750 per 10 grams. Meanwhile, gold with 99.5% purity gained Rs 450, reaching a lifetime high of Rs 90,800 per 10 grams, up from Rs 90,350 the previous day.
“Gold continued its rally on Tuesday, hitting new highs both in domestic and international markets,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities told news agency PTI.
He explained that gold remains an attractive safe-haven asset amid ongoing uncertainties surrounding US President Donald Trump‘s policies, fears of a US recession, and geopolitical tensions.
The recent weak US economic data has also fuelled expectations of multiple interest rate cuts by the US Federal Reserve this year supporting the appeal of gold as a non-yielding asset, Gandhi added.
In contrast, silver prices remained steady at Rs 1,02,500 per kg, also touching historic high.
Gold futures also saw a jump of Rs 649, or 0.73%, reaching a new peak of Rs 88,672 in afternoon trading on the Multi Commodity Exchange (MCX).
“Gold’s upward momentum continues in the MCX market, driven by heightened geopolitical tensions, particularly US strikes on Yemen’s Houthis, and instability in the Middle East,” said Jateen Trivedi, VP of Research at LKP Securities.
He also noted that China’s economic stimulus plans have further fuelled demand for gold as a safe-haven asset.
On the global front, spot gold hit a new record of USD 3,028.49 per ounce, while Comex gold futures rose to a fresh high of USD 3,037.26 per ounce.
“Gold prices have reached an all-time high due to growing recession fears in the US, with investors waiting for further direction from the Federal Reserve on its policy decisions,” said Chintan Mehta, CEO of Abans Financial Services Ltd.
According to Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, gold prices this week will also be influenced by the upcoming Federal Reserve policy meeting, with investors hoping for clarity on future monetary policy in light of rising economic concerns.
Disclaimer: The opinions, analyses and recommendations expressed herein are those of brokerage and do not reflect the views of The Times of India. Always consult with a qualified investment advisor or financial planner before making any investment decisions.
