Gold prices in India surged to a new high of Rs 8,432 per gram on Wednesday, up Rs 1,322 from the Rs 8,310 that prevailed on February 4. It is rising as safe haven buying amid global uncertainties supports this rise.
According to experts, gold prices reached a record high because it is driven by safe-haven demand following China's reaction to US tariffs, which President Donald Trump had first imposed on the world's largest consumer of gold.
The company Motilal Oswal Financial Services Limited believes the US tariffs are inflationary, which can help increase the safe-haven demand for bullion, generally regarded as an hedge against the increase in prices as well as geopolitical turmoil.
The 22-carat gold was traded at Rs 8,230 per gram. In the Multi Commodity Exchange, the April gold futures reached an all-time high of Rs 84,200 per 10 grams.
In Delhi, 24-carat gold had traded at Rs 85,383 per 10 grams, while in Chennai it was Rs 85,231 per 10 grams.
Gold in Mumbai and Kolkata was trading at Rs 85,237 per 10 grams and Rs 85,235 per 10 grams, respectively.
Silver prices however were almost stable. March silver futures on MCX were quoted at Rs 95,674 per kilogram.
However, silver has gained Rs 1,400 per kilogram so far this week.
Chennai was the most expensive silver market that could be listed at Rs 1,08,600 per kilogram. Delhi is the cheapest at Rs 1,01,500 per kilogram.
Silver was trading in Mumbai at Rs 1,00,800 per kilogram, and in Kolkata at Rs 1,02,300 per kilogram.
In the international market, spot gold rose 0.2 per cent at $2,847.33 per ounce. It touched an all-time high at one point of $2,848.94 per ounce.
US gold futures were steady at $2,876.10 per ounce. Spot silver added 0.2 percent to $32.15 an ounce.
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