Gold soars past Rs 1.18 lakh as rupee hits record low, global jitters fuel demand

Gold prices surged Rs 2,700 to scale a new peak of Rs 1,18,900 per 10 grams in the national capital amid sustained global demand for the safe-haven asset while rupee touching a new low facing the brunt of US H-1B visa fee hike.

According to the All India Sarafa Association, the yellow metal of 99.9 per cent purity had closed at Rs 1,16,200 per 10 grams in the previous market session. In the local bullion market, gold of 99.5 per cent purity rallied Rs 2,650 to hit a record high of Rs 1,18,300 per 10 grams (inclusive of all taxes). It had settled at Rs 1,15,650 per 10 grams on Monday. Traders said the rupee's steep fall against the US dollar added to the rally of the precious metal.

So far in this year, gold prices have added Rs 39,950 per 10 grams, or 50.60 per cent, rallying from Rs 78,950 per 10 grams on December 31, 2024. Silver prices also skyrocketed by Rs 3,220 to hit an all-time high of Rs 1,39,600 per kilogram (inclusive of all taxes) on Tuesday.

The white metal had ended at Rs 1,36,380 per kg in the previous session. Silver prices have risen Rs 49,900 per kilogram or 55.63 per cent in the current calendar year, skyrocketing from Rs 89,700 per kg on December 31, 2024. "In the Delhi markets, the spot gold price (24 carats) is trading at another record high from the previous close.

A weaker rupee further bolsters the price of domestic bullion prices," said Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities. On Tuesday, the rupee depreciated 47 paise to hit an all-time low of 88.75 against the US dollar, amid sustained outflow of foreign funds on the back of a steep hike in US H-1B visa fee that is expected to give a big blow to Indian IT services exports.

In the international markets, spot gold rose more than 1 per cent to hit a record high of USD 3,791.10 per ounce. "Spot gold surged to a fresh all-time high of USD 3,791 per ounce on Tuesday, driven by mounting expectations of more US rate cuts in 2025 and news that China is positioning itself as a custodian of foreign sovereign gold reserves," Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said.

Meanwhile, Sensex and Nifty closed lower for the third consecutive day on Tuesday in a volatile trade. The 30-share BSE Sensex closed lower by 57.87 points or 0.07% at 82,102.10 while The 50-share NSE Nifty dipped 32.85 points or 0.13% to 25,169.50.