Gold Prices Surge Past Rs 1 Lakh per 10 Grams Today
Gold prices surged dramatically on Wednesday, climbing by Rs 1,000 to surpass the crucial Rs 1 lakh per 10-gram threshold in the national capital. This spike in prices was largely driven by escalating tensions between India and Pakistan, prompting investors to seek refuge in safe-haven assets like gold. The All India Sarafa Association reported that gold of 99.9% purity reached Rs 1,00,750 per 10 grams, while gold of 99.5% purity rose to Rs 1,00,350 per 10 grams, reflecting a significant increase from the previous day’s prices.
Impact of Military Operations on Gold Prices
The recent surge in gold prices coincided with reports of Indian military operations targeting terrorist sites in Pakistan and Pakistan-occupied Kashmir. Early Wednesday, the Indian armed forces conducted missile strikes on nine locations, including strongholds of Jaish-e-Mohammad and Lashkar-e-Taiba. This military action was reportedly a response to a recent terrorist attack in Pahalgam. The heightened geopolitical tensions have led to increased demand for gold, as investors often turn to this precious metal during uncertain times. The price of gold had previously reached an all-time high of Rs 1,01,600 per 10 grams in April, when it surged by Rs 1,800 in a single day.
Silver Prices Follow Gold’s Lead
In addition to gold, silver prices also experienced a notable increase, rising by Rs 440 to settle at Rs 98,940 per kg. This increase reflects a broader trend in precious metals, as investors look for safe-haven assets amid rising geopolitical tensions. The price of silver had been Rs 98,500 the previous day, indicating a strong market response to the current situation. The correlation between gold and silver prices is often observed, as both metals are seen as reliable stores of value during times of crisis.
Global Market Trends and Future Outlook
Despite the surge in domestic gold prices, international spot gold experienced a decline of 1.8%, trading at USD 3,369.65 per ounce. This drop is attributed to easing geopolitical concerns, particularly with upcoming trade talks between the United States and China. Analysts suggest that the market is shifting back towards risk assets, as hopes for progress in trade negotiations grow. However, underlying risks remain, with ongoing conflicts in the Middle East and Ukraine, as well as persistent tensions between India and Pakistan.
Chintan Mehta, CEO of Abans Financial Services, noted that while gold prices have eased globally, they remain a dependable hedge in the current uncertain economic climate. Market participants are now closely monitoring the upcoming Federal Reserveโs FOMC policy decision, with expectations that interest rates will remain unchanged despite pressure from President Donald Trump for cuts to support economic growth. Traders are also looking for insights from Fed Chair Jerome Powell regarding future monetary policy directions.
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