Key Points:
- Record highs: Gold prices in Delhi hit ₹96,450 per 10 grams, with rates surging due to escalating U.S.-China trade tensions.
- Global factors: A weakening dollar, geopolitical uncertainty, and increased central bank purchases are driving gold’s bull run.
- Futures market impact: Gold futures have risen by ₹6,800 since April 7, reflecting strong investor demand for safe-haven assets.
- Experts’ predictions: Analysts expect gold prices to rise further, potentially crossing ₹1 lakh per 10 grams in the coming months.
New Delhi: Gold prices in India’s capital Delhi soared to a record ₹96,450 per 10 grams on Friday, marking one of the sharpest increases in recent times. The surge is attributed to heightened geopolitical tensions stemming from the U.S.-China trade war and a weakening dollar. Analysts predict that gold prices could climb even higher, potentially reaching ₹1 lakh per 10 grams in the near future.
Delhi’s Bullion Market: Record Surge
The All India Sarafa Association reported that gold prices jumped by ₹6,250 on Friday due to heavy demand from local jewelers and retailers. This increase follows a significant rise in international gold rates as investors flock to the yellow metal amid global economic instability.
Current Gold Rates in Delhi:
- 99.9% purity: ₹96,450 per 10 grams
- 99.5% purity: ₹96,000 per 10 grams
The previous day’s closing price for 99.9% pure gold was ₹90,200 per 10 grams, highlighting the dramatic price hike.
Global Factors Driving Gold’s Rally
Gold prices are being influenced by several global factors:
- Escalating U.S.-China Trade War: President Donald Trump recently increased tariffs on Chinese imports to 145%, prompting retaliatory measures from Beijing. This has fueled investor interest in gold as a safe-haven asset.
- Weakening Dollar: The dollar index fell below 100 as central banks sold U.S. bonds and purchased gold, making the precious metal more affordable for international buyers.
- Central Bank Purchases: Increased buying by central banks worldwide has supported gold prices.
- Lower Interest Rate Expectations: Speculation about rate cuts by the U.S. Federal Reserve is boosting demand for gold.
Spot gold prices globally hit $3,219 per ounce on Friday, marking an all-time high.
Futures Market Trends
Gold futures in India have also seen significant gains. On April 11, MCX gold futures for June delivery rose to ₹93,736 per 10 grams—an increase of over ₹6,800 since April 7. This reflects strong investor sentiment and expectations of further price hikes.
Will Gold Reach ₹1 Lakh Per 10 Grams?
Experts are divided on whether gold will cross the ₹1 lakh mark this year:
However, some analysts caution that any resolution of trade disputes or stronger-than-expected economic data could temper gold’s upward momentum.
Impact on Consumers and Markets
The surge in gold prices is impacting both consumers and businesses:
- Jewelry Demand: Retail buyers are facing higher costs, potentially reducing demand for gold ornaments.
- Investment Appeal: Investors are increasingly turning to gold ETFs and bullion as safer alternatives amid volatile equity markets.
Gold’s rally reflects growing uncertainty in global markets and its enduring appeal as a safe-haven asset during economic turbulence. With experts predicting further increases, all eyes are on whether the yellow metal will achieve new milestones in the coming months!
