Gold, silver soar to fresh record high

New Delhi: Gold prices surged Rs 2,700 to scale a new peak of Rs 1,18,900 per 10 grams in the national capital amid sustained global demand for the safe-haven asset while rupee touching a new low facing the brunt of US H-1B visa fee hike. According to the All India Sarafa Association, the yellow metal of 99.9 per cent purity had closed at Rs 1,16,200 per 10 grams in the previous market session. In the local bullion market, gold of 99.5 per cent purity rallied Rs 2,650 to hit a record high of Rs1,18,300 per 10 grams. It had settled at Rs 1,15,650 per 10 grams on Monday.

Traders said the rupee’s steep fall against the US dollar added to the rally of the precious metal. Silver prices also skyrocketed by Rs3,220 to hit an all-time high of Rs1,39,600 per kilogram. The white metal had ended at Rs1,36,380 per kg in the previous session. On Tuesday, the rupee depreciated 47 paise to hit an all-time low of 88.75 against the US dollar, amid sustained outflow of foreign funds on the back of a steep hike in US H-1B visa fee that is expected to give a big blow to Indian IT services exports. In the international markets, spot gold rose more than 1 per cent to hit a record high of $3,791.10 per ounce. Spot silver was trading 0.57 per cent higher at $44.32 per ounce.

“Spot gold surged to a fresh all-time high of USD 3,791 per ounce on Tuesday, driven by mounting expectations of more US rate cuts in 2025 and news that China is positioning itself as a custodian of foreign sovereign gold reserves,” Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said.

Chainwala further stated that momentum in precious metal prices was already building from Friday, when exchange-traded funds added 8.61 lakh troy ounces of gold to holdings, the biggest one-day inflow since January 2022. SPDR Gold Trust reported a 0.60 per cent increase in holdings to 1,000.57 tonnes, the highest level in over three years, reinforcing bullish sentiment. Renisha Chainani, Head - Research at Augmont said: “Gold prices touch a new record high driven by expectations that the US Federal Reserve (Fed) may lower interest rates further this year.”