Shine On: Gold Rockets Past Rs 99,700, Setting Sights on New Peaks

Image Source: Business Standard

Gold prices jumped Rs 480 on Friday to Rs 99,730 per 10 grams in the national capital, moving close to the historic Rs 1 lakh level. The surge was led by strong demand for safe-haven assets as geopolitical tensions, especially between India and Pakistan, rose.

Key Highlights:

99.9% purity gold closed at Rs 99,730 per 10 grams from Rs 99,250 in the last session.
99.5% pure gold also increased by Rs 480, closing at Rs 99,280 per 10 grams.
The price hike is due to increasing geopolitical tensions, such as India-Pakistan tensions, the Russia-Ukraine war, and continued turmoil in Gaza, leading investors to take refuge in gold.

Prices of silver followed the trend, going up by Rs 200 to Rs 98,400 per kilogram.

In the global market, spot gold rose by USD 22.37 to USD 3,328.09 per ounce and spot silver increased to USD 32.54 per ounce.

Analysts add that the relief provided by the easing of trade tensions has been some, but underlying geopolitical threats continue to fuel gold's rise.

Investors are keenly observing forthcoming remarks from US Federal Reserve officials, which may impact the future direction of gold prices and the US dollar.

The latest rally is part of a trend of increasing gold prices in India, driven by global economic instability and concerns of a possible US recession.

With gold prices now at the doorstep of the Rs 1 lakh mark, market players expect volatility to persist as geopolitical and economic factors continue to change.

Source: Outlook Business