Gold prices surged to an all-time high of ₹96,450 per 10 grams in the national capital on Friday, marking a sharp increase of ₹6,250 from the previous session. The jump was driven by robust buying from jewellers and retailers, as well as strong cues from global markets, according to the All India Sarafa Association.
This marks a significant rebound in domestic gold prices after a four-day decline. Gold of 99.5% purity also climbed dramatically by ₹6,250 to ₹96,000 per 10 grams, compared to the earlier close of ₹89,750. Similarly, gold of 99.9% purity, which had ended at ₹90,200 on Wednesday, saw a steep rise.
Silver prices followed suit, registering an increase of ₹2,300 to ₹95,500 per kilogram. This rise, in line with international market trends, comes after silver had previously closed at ₹93,200 per kilogram. The bullion markets were closed on Thursday due to Mahavir Jayanti.
On the futures front, gold for June delivery on the Multi Commodity Exchange (MCX) rallied by ₹1,703 to hit a record high of ₹93,736 per 10 grams.
“Despite a stronger rupee, gold continued its record-breaking trend due to rising geopolitical tensions and escalating trade disputes between the US and China,” said Jateen Trivedi, VP Research Analyst at LKP Securities.
In the international arena, spot gold climbed to an unprecedented high of USD 3,237.39 per ounce before slightly retreating to USD 3,222.04 per ounce. Comex gold futures also reached a record peak of USD 3,249.16 per ounce during Asian trading hours.
Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, noted that heightened safe-haven demand has been a key driver, fueled by fears of a prolonged US-China trade conflict.
These concerns intensified after the US administration announced tariffs of up to 145% on Chinese imports, which triggered retaliatory duties of up to 125% by China. The developments have raised alarms about deeper retaliatory actions and potential global economic deceleration, further pressuring the US dollar, which recently dropped below the 100-mark.
According to a recent note from UBS, a leading global investment banking firm, the combination of financial market volatility, recession fears, and ongoing geopolitical tensions is likely to keep gold prices buoyant. The firm also highlighted that central banks have been consistently adding to their gold reserves — exceeding 1,000 metric tons annually over the last three years — as part of a global move to reduce dependence on the US dollar.
With geopolitical uncertainties persisting, analysts suggest that the demand for gold as a safe-haven asset is likely to remain strong in the foreseeable future.
