New Delhi: Gold prices extended the rally for the fifth straight session and rose Rs 500 to hit a fresh peak of Rs 85,800 per 10 grams in the national capital on Tuesday amid robust demand from jewellers and retailers, according to the All India Sarafa Association.
The precious metal of 99.9 per cent purity closed at Rs 85,300 per 10 grams in the previous session.
In this year, gold has surged Rs 6,410 or 8.07 per cent to Rs 85,800 per 10 grams from Rs 79,390 per 10 grams on January 1.
Gold of 99.5 per cent purity also climbed for the fifth straight session and gained Rs 500 to hit another record high of Rs 85,400 per 10 grams on Tuesday.
Silver prices, however, snapped a five-day winning streak and fell Rs 500 to Rs 95,500 per kg against Monday’s closing level of Rs 96,000 per kg.
In futures trade, gold on the MCX for April delivery declined Rs 208 or 0.25 per cent to Rs 83,075 per 10 grams.
“Gold’s positive rally took a slight pause as MCX gold traded near Rs 83,000 with a minor Rs 200 dip. This weakness came as tariff discussions between the US, Canada, and Mexico gained traction,” Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, said.
Silver futures for March delivery also slipped Rs 35 to Rs 94,222 per kg on the Multi Commodity Exchange (MCX).
Comex gold futures for April delivery fell USD 17 per ounce or 0.60 per cent to USD 2,840.10 per ounce.
On Monday, the yellow metal futures had hit a fresh high of USD 2,872 per ounce.
According to Abans Holdings’ Chief Executive Officer Chintan Mehta, gold hit record highs on Monday amid fears of a global trade war, driving investors toward the safe-haven metal at high premiums.
“Geopolitical uncertainty continues to rise as Trump’s tariffs on Canada and Mexico are paused for a month following negotiations on stricter border enforcement.
“Meanwhile, China’s central bank increased its gold reserves for the second consecutive month in December, as central banks worldwide continue to hedge against economic volatility,” Mehta said.
Comex silver futures in the Asian market hours decreased 0.71 per cent to USD 32.20 per ounce.
Investors will focus on US macroeconomic data, such as the release of JOLTS ( Job Openings and Labor Turnover Survey) numbers and factory orders data to be release later on Tuesday. The data release might provide some impetus to the US dollar and the gold price, Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
