Gold rises Rs 250 to hit fresh peak of Rs 1.13 lakh/10 g

Gold prices climbed Rs 250 to scale yet another peak of Rs 1,13,000 per 10 grams in the national capital on Wednesday, buoyed by robust buying by central banks globally, a weak dollar, and lingering geopolitical uncertainties.

So far this year, the precious metal prices have added Rs 34,050 or 43.12 per cent, surging from Rs 78,950 per 10 grams on December 31, 2024.

According to the All India Sarafa Association, the precious metal had closed at Rs 1,12,750 per 10 grams, rallying by Rs 5,080 on Tuesday.

On Wednesday gold of 99.5 per cent purity also appreciated by Rs 250 to hit a lifetime high of Rs 1,12,500 per 10 grams (inclusive of all taxes).

"Gold continues to trade near record highs, supported by a weakening US dollar index, which has slipped to a seven-week low, and growing expectations of aggressive rate cuts in the coming months.

"Additional strength has come from retreating US Treasury yields and rising geopolitical tensions in the Middle East region, though much of this appears to be already priced in," said Chintan Mehta, CEO at Abans Financial Services.

Meanwhile, silver prices retreated from record levels, declining by Rs 300 to Rs 1,28,500 per kg (inclusive of all taxes) on Wednesday. In the previous session, the white metal had settled at Rs 1,28,800 per kg, as per the Association.

In overseas markets, spot gold was trading 0.85 per cent higher at USD 3,657.09 per ounce. The yellow metal had surged to hit a fresh peak of USD 3,674.75 per ounce on Tuesday.

"The US Federal Reserve policy outlook, central bank accumulation globally, geopolitical tensions, ETFs and institutional flows remain the key drivers behind the rally for the precious metal," N S Ramaswamy, Head of Commodity Desk and CRM at Ventura, said.

Ramaswamy further said: "Gold is turning out to be the main course, serving hot, in one's portfolio.

New fresh highs are in the face of a fresh political crisis in France, Japan and the US sanctions against Russia, he added.

Also, interest rate cuts bets have intensified after a weaker-than-expected US jobs report on Friday.

Spot silver rose 0.88 per cent to USD 41.23 per ounce.

Market participants will closely monitor US macroeconomic data including the Producer Price Index to be release later in the day and Consumer Price Index on Thursday, which may have a bearing on the Fed rate cut decisions and sentiment for the bullion prices in the near-term, Ramaswamy added.

(With PTI Inputs)