Gold glitters to hit fresh record high of Rs 91,950 per 10 gm
Powered by continued buying by jewellers ahead of wedding season and amid strong global cues, gold continued to glitter on Wednesday as well with the prices of precious metal soaring Rs 700 to reach a fresh record high of Rs 91,950 per 10 grams in New Delhi.
Experts have attributed the gold rally to increased tensions in the Middle East and concerns about the US economic slowdown that have kept the demand for safe-haven assets intact.
According to the All India Sarafa Association bulletin, the precious metal prices of 99.9 per cent purity advanced by Rs 700 to hit a fresh lifetime high of Rs 91,950 per 10 grams. It had closed at Rs 91,250 per 10 grams on Tuesday.
Similarly, the yellow metal prices of 99.5 per cent purity also rose by Rs 700 to hit a record high of Rs 91,500 per 10 grams.
“Increased buying by local jewellers to meet festive and wedding season demand and a firm trend in the overseas markets mainly lifted gold prices to this year’s highest level,” the market analysts opined.
Gold futures for April delivery climbed by Rs 19 to Rs 88,745 per 10 grams in futures trade. It soared by Rs 288 to breach the psychological level of Rs 89,000 per 10 grams in the morning trade.
Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said gold prices maintained an overall upward trend but remained range-bound ahead of the highly anticipated Fed policy and statement tonight.
Meanwhile, spot gold rose 0.15 per cent to USD 3,039.22 per ounce in the international markets, which was still less than a record high of USD 3,045.39 per ounce that it had earlier hit during the session.
Chintan Mehta, Chief Executive Officer at Abans Financial Services Ltd, said gold prices have hit record highs on safe-haven demand as escalating Middle East tensions and fears of a trade war under Trump’s administration have created global economic uncertainty comparable to levels seen during the peak of the Covid pandemic. “This uncertainty has prompted central banks worldwide to stockpile gold at unprecedented levels, diversifying their reserves away from US Treasuries,” he said, while adding that inflows into gold exchange-traded funds (ETFs) have surged, with February 2025 seeing record inflows of USD 9.4 billion (100 tonnes), further supporting the bullion prices.
“Traders are closely watching the US Federal Reserve’s Federal Open Market Committee (FOMC) meeting outcome. Market participants will also focus on economic projections and Fed Chair Jerome Powell’s press conference, which could provide clues for future interest rate paths and provide additional direction for bullion,” HDFC Securities’ Senior Analyst of Commodities Saumil Gandhi said.
Predicting that gold could climb further, potentially reaching USD 4,000 per ounce by the end of 2025, driven by ongoing geopolitical risks, inflationary pressures, and sustained central bank demand, the commodities market experts, while commenting on the market outlook, added that if economic conditions improve later in the year, sentiment in the gold market may shift.
