In FY25, gold prices have increased by Rs 23,730 or 35 per cent from Rs 68,420 per 10 grams on April 1 last year.
Continuing the momentum for the third straight session, gold of 99.5 per cent purity jumped by Rs 1,100 to hit a lifetime high of Rs 91,700 per 10 grams. It had concluded at Rs 90,600 per 10 grams in the previous market close.
“Gold prices continues the bullish momentum and set a new record high on Friday. The gold rise is being driven by the fear of an escalating global trade war and its implications for economic development,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
Silver prices surged by Rs 1,300 to trade near a record high at Rs 1,03,000 per kg against Thursday’s closing level of Rs 1,01,700 per kg.
On March 19, the white metal prices hit a record high of Rs 1,03,500 per kg. Meanwhile, gold futures for April delivery appreciated by Rs 542 to Rs 88,926 per 10 grams on the Multi Commodity Exchange. “Gold prices continued to trade higher in the spot market as tariff concerns persisted, keeping buying interest intact,” Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, said.
With the April 2 reciprocal tariffs approaching, US President Donald Trump is expected to impose them across all trade deals, further fuelling uncertainty, Trivedi added.
On the global front, spot gold surged to hit a record high of USD 3,086.08 per ounce. Also, Comex gold futures hit yet another peak of USD 3,124.40 per ounce.
According to Kotak Securities, Comex gold futures surged to a record high driven by escalating trade war anxieties as President Trump’s auto import tariffs and threats of further levies against the EU and Canada intensified safe-haven demand.
Gold prices have increased by about 8.2 per cent this month supported by geopolitical tensions and robust central bank purchases, the brokerage firm said in a note.
Spot silver in the Asian market hours was trading flat at USD 34.42 per ounce. In addition, Comex silver futures rose 0.7 per cent to USD 35.33 per ounce.
Traders said growing uncertainty over the economic fallout from these tariffs is further amplifying market volatility, as the levies are expected to fuel inflation and slow global economic growth, strengthening demand for the precious metal.
Abans Financial Services’ Chief Executive Officer Chintan Mehta said, “Investors are awaiting speeches from multiple Federal Reserve officials for insights into the central bank’s monetary policy outlook this week.
Additionally, market participants will also closely monitor the US Personal Consumption Expenditures (PCE) data, to be release later on Friday, as it is the US Federal Reserve’s preferred inflation gauge and a key indicator for its next policy moves, Mehta added.
