Gold Prices Surge to Record Rs 1.58 Lakh/10g, Global Rate Tops $4,800/Ounce
Rising safe haven demand, rupee weakness, and global uncertainty fuel historic rally in bullion markets
New Delhi, Jan 21: Gold futures surged to an all time high of Rs 1,58,339 per 10 grams on Wednesday, up Rs 7,774, as global prices breached the USD 4,800 per ounce mark amid robust safe haven demand.
The yellow metal rallied for the third consecutive day, with February delivery contracts on the Multi Commodity Exchange (MCX) climbing 5.16 per cent. Over the past three sessions, gold prices have jumped Rs 15,822, or 11.10 per cent, from Rs 1,42,517 per 10 grams recorded on January 16.
Silver also extended its rally, hitting a record of Rs 3,35,521 per kilogram for March contracts, up Rs 11,849 or 3.66 per cent on the MCX.
Rahul Kalantri, Vice-President of Commodities at Mehta Equities Ltd, said the sharp gains in gold and silver were driven by heightened global uncertainty, including trade tensions and geopolitical risks, prompting investors to move away from riskier assets.
Internationally, gold futures on Comex rose by USD 113.4, or 2.4 per cent, to USD 4,880.9 per ounce, while silver futures were up 0.17 per cent at USD 94.79 per ounce.
Factors contributing to the historic rally include sell-offs in global equities, US policy uncertainties, depreciation of the Indian rupee against the dollar, and expectations of US Federal Reserve easing. The rupee’s weakness has made imports costlier, further driving domestic gold prices.
Market analysts said that the combination of geopolitical concerns, falling bond yields, and macroeconomic drivers is likely to sustain the momentum in bullion markets in the near term.
