Gold hit an astounding new peak in Delhi this Monday, soaring by ₹1,950 to reach ₹1,27,950 per 10 grams. This dramatic rise is largely due to investors flocking to safe-haven assets as U.S.-China trade tensions reignited.
Just last Friday, the All India Sarafa Association reported that pure gold (99.9% purity) closed at ₹1,26,000 per 10 grams, making today’s jump even more significant.
Even gold with 99.5% purity wasn’t left behind, escalating by the same ₹1,950 to an all-time high of ₹1,27,350 per 10 grams (taxes included). This precious yellow metal had finished the prior session at ₹1,25,400 per 10 grams.
Jateen Trivedi, VP research analyst for commodity and currency at LKP Securities, explained that the significant surge in gold prices was a direct result of ‘renewed U.S.-China trade tensions, which have reignited safe-haven demand.’
This escalation follows the U.S. administration’s declaration of a massive 100% tariff increase on specific Chinese goods. China, in turn, retaliated with threats to limit rare earth exports, creating a ripple effect of global uncertainty and a sharp increase in risk aversion among investors.
Mr. Trivedi further noted that ‘this ongoing geopolitical tension, combined with consistent demand from investors seeking security, maintains a bullish outlook for gold.’
Silver wasn’t immune to the market’s bullish sentiment either, showing strong movement in spot markets. This ‘white metal’ jumped by an impressive ₹7,500, setting its own new record at ₹1,79,000 per kilogram (all taxes included) on Monday. According to the Association, it had closed at ₹1,71,500 per kg on Friday.
Globally, spot gold prices mirrored this trend, climbing nearly 2% to reach an unprecedented high of $4,084.99 per ounce.
Dilip Parmar, a research analyst at HDFC Securities, highlighted that ‘bullion prices have now hit fresh and unparalleled levels. This is largely fueled by strong festive demand, alongside inherent structural limitations in supply and liquidity. The surge in gold is primarily driven by increasing investment interest, set against a backdrop of ongoing geopolitical tension and consistent accumulation by global central banks.’
According to Mr. Parmar, traders anticipate that the current sustained bull market for precious metals will continue its upward trajectory, supported by strong investment momentum and predictable seasonal buying patterns.
In international markets, spot silver also experienced a notable increase, rising by almost 3% to achieve a new all-time high of $51.74 per ounce.
Jigar Trivedi, a senior research analyst at Reliance Securities, commented that ‘silver surged over 2% to surpass $51 per ounce on Monday, establishing a new record. This was primarily driven by renewed U.S.-China trade worries, broader political instability, and the anticipation of additional U.S. interest rate cuts, all contributing to increased demand for safe-haven investments.’