Persistent buying by stockists and a severe depreciation in the rupee rallied gold prices by ₹2,100 to hit a fresh new all-time high of ₹1,03,670 per 10 grams in the national capital on Friday, said All India Sarafa Association.
The precious metal of 99.9 per cent purity had closed at ₹1,01,570 per 10 grams on Thursday and continued its upside momentum for the fourth straight session.
Gold of 99.5 per cent purity surged ₹2,100 to hit a new lifetime high of ₹1,03,100 per 10 grams (inclusive of all taxes) on Friday, a day after settling at ₹1,01,000 per 10 grams.
Gold of 99.9 and 99.5 per cent purity had recorded their lifetime highs of ₹1,03,420 and ₹1,03,000 per 10 grams, respectively, on August 8 when the prices went up by ₹800 per 10 grams. This was on the heels of a steep gain of ₹3,600 per 10 gram in the preceding session on August 7.
Also Read: Safe-haven demand makes gold pricier by ₹600
Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said the sharp rise in gold prices in the domestic markets was led by a weaker rupee and a positive trend in the overseas market.
"The Indian rupee hit an all-time low, raising concerns about the impact of 50 per cent US tariffs on the country's GDP,” he added.
On Friday, the rupee breached the 88-mark for the first time and closed at an all-time low of 88.19 (provisional) against the US dollar, registering a sharp decline of 61 paise amid heightened concerns over a trade deal between India and the US.
During the week, the precious metal prices have increased by ₹3,300 or 3.29 per cent.
Meanwhile, silver prices retreated from its all-time high level and declined ₹1,000 to ₹1,19,000 per kilogram (inclusive of all taxes) on Friday. The white metal had finished at ₹1,20,000 per kg on Thursday.
In futures trade, the most-traded gold contract for October delivery climbed ₹713 or 0.70 per cent to hit a fresh peak of ₹1,02,813 per 10 grams on the Multi Commodity Exchange (MCX).
Subsequently, the precious metal for December delivery appreciated by ₹702 or 0.68 per cent to hit a fresh all-time high of ₹1,03,849 per 10 grams.
Trivesh D, Chief Operating Officer of brokerage firm Tradejini, said while gold was now trading higher after a brief decline earlier this month, silver had hit an all-time high that showed the white metal’s consistent outperformance in recent weeks.
"Heightened political uncertainty over the possible dismissal of the Fed Governor and the announcement of steep tariffs on Indian products came into effect sparked safe-haven buying, pushing bullion higher amid concerns about trade tensions and global growth," he said.
Additionally, the most-traded silver futures contract for September delivery increased ₹651 to hit an all-time high of ₹1,17,825 per kilogram.
The white metal futures for December contract also rallied ₹641 or 0.54 per cent to hit a fresh peak of ₹1,19,285 per kg on the MCX.
"The industrial demand for silver makes it even better, but gold is still a good hedge against uncertainty. In the last five years, both metals continued to make new records every year, underlining their role in volatile markets," Trivesh D said.
In the overseas markets, spot gold was trading flat at USD 3,407.39 per ounce in New York.
"Gold prices rose after safe-haven demand on concerns that political pressure on the Federal Reserve could accelerate interest rate cuts," Renisha Chainani, Head - Research at Augmont, said.
Spot silver went down by 0.52 per cent to trade at USD 38.84 per ounce.
Trivesh D further said, "Silver is currently trading near a resistance of USD 39.60 per ounce, and if this level is breached, it could move towards USD 44 per ounce, implying close to a 12 per cent appreciation from current levels."
According to Praveen Singh, Head of commodities and currencies, Mirae Asset ShareKhan, investors will be awaiting US PCE Price Index, Fed's preferred gauge of inflation, to be release later in the day, which will provide guidance on the monetary policy outlook and direction for the bullion sentiment.
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