Gold Prices Hit Record High Amid Global Uncertainty
Gold prices in the national capital soared by ₹70 on Thursday, reaching an unprecedented ₹98,170 per 10 grams. This surge follows a significant increase of ₹1,650 in the previous session, driven by strong global market trends. The rise in gold prices reflects ongoing economic concerns, including a weaker dollar and escalating trade tensions.
Factors Driving Gold Prices Up
The recent spike in gold prices can be attributed to several global factors. Chintan Mehta, CEO of Abans Financial Services, noted that a weaker dollar and heightened trade war tensions have contributed to the surge. The ongoing U.S.-China trade conflict is disrupting supply chains and raising fears of inflation and recession. As uncertainty looms, investors are increasingly turning to gold as a safe haven, reinforcing its status as a reliable hedge against market volatility.
Major banks are also expressing optimism about gold, citing widespread sell-offs in equities, bonds, and currencies. This shift in sentiment has led to increased inflows into gold-backed exchange-traded funds (ETFs) and sustained buying from central banks. As a result, the demand for gold continues to rise, pushing prices to new heights.
Silver Prices Experience Sharp Decline
In contrast to gold, silver prices experienced a significant correction on Thursday. The price of silver dropped by ₹1,400, settling at ₹98,000 per kilogram, down from ₹99,400 in the previous session. This decline highlights the volatility in the precious metals market, as investors react to shifting economic indicators and global uncertainties.
International Market Trends
On the international front, spot gold initially surged to a record high of USD 3,357.81 per ounce before retracting to USD 3,328.84 per ounce. The fluctuations in gold prices are closely tied to global economic conditions. Kaynat Chainwala, AVP of Commodity Research at Kotak Securities, pointed out that the U.S. Federal Reserve Chair Jerome Powell’s warnings about uncertainty in U.S. trade policy could dampen economic growth and global risk appetite.
Meanwhile, spot silver in the Asian market faced pressure, falling 1.37% to USD 32.32 per ounce. Investors are now closely monitoring key U.S. macroeconomic data, including initial jobless claims and the Philadelphia Fed manufacturing index, which are expected to be released later today.
Looking Ahead: Market Expectations
As the market navigates these turbulent times, investors are keenly awaiting the European Central Bank’s (ECB) policy decision, which could provide further insights into the interest rate cycle amid ongoing tariff concerns from the U.S. Saumil Gandhi, Senior Analyst at HDFC Securities, emphasized that these developments will be crucial for shaping market sentiment in the coming days. The interplay of economic data and central bank policies will likely influence gold and silver prices as investors seek stability in an uncertain environment.
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