MUMBAI: Domestic gold prices touched an all-time high of Rs 89,450/10g, amid global clues—primarily because of the steep fall on the Wall Street due to the intensifying trade wards. The metal is expected scale higher on Monday as international prices rose to an all-time level of $2990/ounce on the Chicago Mercantile Exchange early on Thursday.
In the Delhi market gold prices climbed by Rs 600 to revisit the all-time high of Rs 89,450/10 grams on Thursday amid a firm global trend, according to local marketmen. The metal of 99.9% purity had settled at Rs 88,850 on Wednesday.
On February 20, the yellow metal had touched an all-time high of Rs 89,450 first time.
But given the massive rally in the global market—at 2100 hrs IST, the metal was trading at $2990/ounce on the CME-- the domestic prices are set to shoot up much higher when the market reopens on Monday.
In Kerala, the largest market in the country, prices hit an all-time of 81200, up 55 a gram of gold jewellery—the domestic prices are not an exact conversion of the CME prices, nut a blended mix of LME and Dubai prices—based on the global average price of $2944 on Wednesday.
The gems and gold council is expecting the prices continue to climb going forward as the tariff war intensifies.
Foreign analysts are expecting the metal to climb to $3100-3200 this year.
"Gold is in a secular bull market. we forecast prices to trade between $3000 and $3200 per ounce this year," Allegiance Gold said in a note, which also added that Trump's trade policies have helped the metal rally 12% since January 20, when he assumed office.
Meanwhile, silver prices also rallied by Rs 1,000 to hit nearly a five-month high of Rs 1,01,200/kg. The white metal had finished at Rs 1,00,200/kg in the previous market close.
In futures trade on the Multi-Commodity Exchange, gold contracts for April delivery rallied by Rs 210 to hit a record high of Rs 86,896.
"Gold prices surged to a new record high in the domestic market, while in the international market, spot gold rallied to near-record highs buoyed by safe-haven demand and cooler-than-expected US consumer inflation data, which supported the case for further Federal Reserve monetary easing this year," Saumil Gandhi, senior commodity analyst at HDFC Securities, said.