New Delhi, Jan 17: Continuing its upward trend for the third consecutive day, gold prices surged by ₹700 on Friday, reaching near-record levels at ₹82,000 per 10 grams in the national capital. The rise is attributed to sustained buying in the local markets, as reported by the All India Sarafa Association.
Gold of 99.5% purity also saw an increase, trading at ₹81,600 per 10 grams, up from ₹80,900 in the previous session. On Thursday, gold prices had settled at ₹81,300 per 10 grams.
Conversely, silver prices witnessed a decline, dropping by ₹500 to ₹93,500 per kilogram from ₹94,000 in the previous trading session.
The last record high for gold, with 99.9% and 99.5% purity, was observed on October 31, when prices hit ₹82,400 and ₹82,000 per 10 grams, respectively.
Despite a weaker international market trend, local demand from jewellers has kept the domestic gold prices buoyant. In contrast, the Multi Commodity Exchange (MCX) witnessed a decline in gold futures for February delivery, which fell by ₹424 or 0.54%, settling at ₹78,802 per 10 grams.
Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, commented on the slight retreat in gold prices on the MCX, attributing it to profit booking and easing geopolitical tensions in the Middle East. Positive US economic data, including CPI, retail sales, and a dovish outlook from the Federal Reserve, also influenced the market.
Silver futures for March delivery dropped significantly by ₹1,093 or 1.18% to ₹91,710 per kilogram on the MCX.
In global markets, Comex gold futures decreased by USD 21.10 or 0.77%, trading at USD 2,729.80 per ounce. Kaynat Chainwala, AVP of Commodity Research at Kotak Securities, noted that gold prices slightly dipped below USD 2,750 per ounce in anticipation of upcoming US housing and industrial production data.
Fed Governor Christopher Waller indicated potential rate cuts, which bolstered optimism for the metal. Comex silver futures also saw a 1.47% decline, trading at USD 31.26 per ounce in the Asian market.
Experts believe that uncertainties around US trade policies under President-elect Donald Trump may continue to support gold as a safe-haven asset, while the US dollar remains strong, driven by positive macroeconomic data.
