Gold prices increased further for the eighth day in this week by Rs 200, crossing the Rs 83,000 mark per 10 grams for the first time in the national capital. Market concerns regarding policy uncertainty under US President Donald Trump have increased demand for the yellow metal.
According to All India Sarafa Association, on Friday, the price of 99.9 per cent pure gold hit an all-time record high at Rs 83,100 per 10 grams compared to Thursday's price at Rs 82,900.
International gold prices also surged to a near three-month high on Friday when it is trading around $2780 as that accounts for the fourth successive weekly gain.
There are a few reasons for the surge in gold prices. These include strong demand in the spot market and positive global cues.
According to experts, the uncertainty surrounding US President Trump's trade policies and a flight to safe-haven assets ahead of key central bank policy meetings are keeping the metal in high demand and gold could continue rising.
"Markets continue to wait for Trump Tweets to gauge direction and till then it is likely that Gold will continue to remain in a band with a slightly upward bias," said Sandip Raichura, CEO - Retail Broking and Distribution, Director - PL Broking and Distribution.
The next big trigger is the coming week's Federal Reserve meet where any upward bias on yields could further dampen gold prices, he added.
While the gold has broken out from its symmetrical triangle, the prices have continued to hold above $2,750 (Rs 79,100), therefore we can see further momentum towards $2800 (Rs 80,500) this week, said Dr. Renisha Chainani, Head of Research at Augmont Gold.
Gold on Wednesday touched an all-time high of Rs 82,900 per 10 grams in the national capital on January 23.
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