Gold hits all-time high of Rs 82,700 amid global uncertainties

Gold prices rallied by Rs 630 to a lifetime high of Rs 82,700 per 10 grams in the national capital on Wednesday following persistent buying by jewellers and retailers amid strong global trends, according to the All India Sarafa Association.

Rallying for the sixth straight session, gold of 99.5 per cent purity appreciated by Rs 630 to hit a lifetime high of Rs 82,330 per 10 grams.

"Gold prices touched new all-time highs in Wednesday's session. The uncertainty surrounding US President Donald Trump's trade policy appears to be an important factor driving a haven flow toward precious metals," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

Gold of 99.9 per cent purity previously hit its record level of Rs 82,400 on October 31, 2024. Gold of 99.5 per cent purity hit an all-time of Rs 82,000 per 10 grams same day.

Silver also surged Rs 1,000 to Rs 94,000 per kg on Wednesday.

Meanwhile, in futures trade on the Multi Commodity Exchange (MCX), gold contracts for February delivery increased by Rs 299 or 0.38 per cent to trade at Rs 79,523 per 10 grams on Wednesday.

"In the domestic market, MCX gold registered comparatively minor gains, limited by the rupee's strength. This currency strength capped the upward movement in domestic gold prices," Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said.

Silver futures for March delivery increased Rs 204 or 0.22 per cent to Rs 92,295 per kg.

Globally, Comex gold futures rose USD 10.20 per ounce or 0.37 per cent to USD 2,769.40 per ounce.

"Gold prices continue to rise as the dollar weakens. Markets are worried after Trump delayed his promised trade tariffs on China, Mexico, and Canada, raising fears they may come next month sparking fears of a prolonged trade war," Abans Holdings' Chief Executive Officer Chintan Mehta, said.

Further, weak economic data has added to the bullish outlook for gold, with retail sales falling short of expectations and unemployment claims, Mehta said.

These signs of economic strain have increased speculation that the US Federal Reserve may ease its hawkish stance and introduce more rate cuts this year, and boosting gold's appeal as a safe-haven asset, he added.

Silver Comex futures also traded 0.27 per cent higher at USD 31.58 per ounce.

According to Augmont's Head of Research Renisha Chainani, "Since there is a lot of uncertainty in the market about the tariffs that US President Trump plans to put on imports, the precious market is building momentum to hit record-high levels.

"Over the past ten years, the US trade deficit has almost doubled, rising from USD 500 billion to USD 850 billion in 2024," Chainani said.