Gold prices surge to record high amid geopolitical tensions and market rally

Gold prices reached a new all-time high on Monday's trading session, driven by the latest US inflation and retail sales data, which have increased expectations of at least two rate cuts by the Federal Reserve this year.

Renewed geopolitical tensions in the Middle East have also supported the rise in gold prices. The spot gold price hit a record high of 2450 dollars per ounce earlier today. Year-to-date, prices have increased by 18.65%, surpassing the returns of equities and bonds.

Gold prices previously surged to record highs in April amid fears of a potential conflict between Israel and Iran, although the conflict did not occur. However, ongoing instability in the Middle East is once again boosting gold prices.

Similarly, India experienced a significant rise in gold imports, more than doubling to USD 3.11 billion in April from USD 1.53 billion in March. During this period, gold prices in Delhi ranged between ₹76,400 and ₹67,755 per 10 grams.