Gold Prices Reach New Record Peak: Surges Rs 800 to Rs 65,000 per 10 Grams

Gold prices soared by Rs 800 on Tuesday, reaching a new pinnacle of Rs 65,000 per 10 grams in the national capital, buoyed by robust global trends, as reported by HDFC Securities.

In the preceding session, the precious metal had concluded at Rs 64,200 per 10 grams. Meanwhile, silver surged Rs 900 to Rs 74,900 per kilogram from its previous settlement at Rs 74,000 per kilogram.

Saumil Gandhi, a senior commodities analyst at HDFC Securities, noted, "Spot gold prices (24 carats) in the Delhi markets are currently at Rs 65,000 per 10 grams, marking an increase of Rs 800, driven by bullish signals from international markets. Domestic spot gold hit an unprecedented high of Rs 65,000 on Tuesday."

Internationally, spot gold at Comex was trading at USD 2,110 per ounce, witnessing a surge of over 1 percent from the previous close.

"The surge in gold prices is attributed to mounting speculation that the US Federal Reserve might slash interest rates in June, resulting in a gain of over Rs 2,400 in MCX over the last three days. This increase was further fueled by indications of a slowdown in industrial and construction expenditure in the US, accompanied by a decline in inflationary pressures," explained Jateen Trivedi, VP Research Analyst at LKP Securities.

Trivedi added, "Furthermore, heightened geopolitical tensions have diminished the inclination for short-selling, thereby enhancing the appeal of gold as a buy-on-dip asset."

Silver also witnessed an upswing, with prices quoting higher at USD 23.88 per ounce compared to the previous session's closing at USD 23.09 per ounce.

Pranav Mer, VP of Research (Commodity & Currency) at BlinkX and JM Financial, observed, "Despite a stable dollar in the global market and consistent movements in global equities, gold and silver prices have rebounded and are trading positively. Uncertainty regarding the US Fed's stance on interest rate cuts has prompted investors to gravitate towards safer assets."