SRINAGAR: Gold prices in India surged to a fresh all-time high on Tuesday, hitting Rs 1.26 lakh per 10 grams amid heightened demand for safe-haven assets driven by global trade uncertainties and fears of economic slowdown. Silver, too, soared past Rs 1.62 lakh per kilogram, marking its steepest rally in over a year, according to Moneycontrol.
According to the latest figures, 24-carat gold climbed by Rs 5,124 to Rs 1,26,616 per 10 grams, while 22-carat gold traded at Rs 1,16,065 per 10 grams—both surpassing their previous records set earlier this month. The Multi Commodity Exchange (MCX) reflected similar trends with domestic futures settled near record highs, extending a multi-week rally aligned with international markets. Analysts said the strong momentum was fuelled by investor flight to safety as renewed trade friction between major economies rattled risk sentiment.
In global markets, spot gold traded at 4,111 dollars per ounce, slightly below its earlier peak of 4,190 dollars, according to COMEX data on Perplexity Finance. The surge followed a wave of demand from institutional investors and central banks, particularly across Asia, where uncertainty surrounding U.S.–China trade policy and dollar volatility have spurred massive gold inflows.
Silver prices rallied in tandem, jumping Rs 2,500 in a single session to Rs 1,62,400 per kg. Analysts at The Hindu Business Line reported that the rally was supported by robust industrial orders and speculative buying ahead of India’s festive season, traditionally a strong period for precious metal demand.
Commodity analysts cautioned, however, that the sharp gains could trigger profit-booking and short-term correction. “Safe-haven demand, coupled with weakening global trade indicators, has been the dominant factor driving bullion prices. But volatility is expected to remain high as central banks prepare for policy updates,” said Harish Galipelli, head of commodities at Inditrade Capital, citing macroeconomic cues from the US and Europe.
The rally has come just weeks before Diwali, a period often marked by strong retail jewellery purchases across India, further adding to domestic demand pressures. Experts believe if geopolitical and economic instability persist, gold could cross Rs 1.3 lakh per 10 grams before the end of the year.
