New Delhi, May 7 (PTI) Gold prices surged Rs 1,000 to breach the crucial Rs 1 lakh per 10 gram-mark in the national capital on Wednesday as escalating tensions between India and Pakistan triggered a safe-haven buying rush.
According to the All India Sarafa Association, the precious metal of 99.9 per cent purity climbed Rs 1,000 to Rs 1,00,750 per 10 grams from Tuesday’s closing of Rs 99,750 per 10 grams.
In retaliation for the Pahalgam terror attack, Indian armed forces early on Wednesday carried out missile strikes on nine terror targets in Pakistan and Pakistan-occupied Kashmir (PoK), including the Jaish-e-Mohammad stronghold of Bahawalpur and Lashkar-e-Taiba’s base in Muridke.
Meanwhile, gold of 99.5 per cent purity jumped Rs 1,050 to Rs 1,00,350 per 10 grams on Wednesday. It had ended at Rs 99,300 per 10 grams in the previous market close.
The yellow metal had earlier touched its lifetime high of Rs 1,01,600 per 10 grams on April 22, when it surged Rs 1,800.
In addition, silver prices also rose Rs 440 to Rs 98,940 per kg. The white metal had settled at Rs 98,500 per kg on Tuesday.
In the international markets, spot gold fell USD 62.12 or 1.8 per cent at USD 3,369.65 per ounce.
“Gold prices eased on Wednesday as the upcoming US-China tariff talks helped cool immediate geopolitical concerns, softening safe-haven demand.
“Markets appear to be leaning back into risk assets on hopes of progress in trade negotiations. Still, underlying risks remain elevated with conflicts in the Middle East and Ukraine persist, and tensions between India and Pakistan show no signs of easing,” Abans Financial Services’ Chief Executive Officer Chintan Mehta, said.
Gold continues to stand strong as a reliable hedge in an uncertain global environment, Mehta added.
Spot silver went lower by 1.24 per cent to USD 32.81 per ounce in the global markets.
“Market focus has now shifted to the upcoming US Federal Reserve’s FOMC (Federal Open Market Committee) policy decision, where the Fed is expected to keep interest rates unchanged despite ongoing pressure from President Donald Trump to cut rates in support of economic growth,” Kaynat Chainwala, AVP of Commodity Research at Kotak Securities, said.
Traders are also keenly awaiting Fed Chair Jerome Powell’s remarks for clues on the future direction of monetary policy, Chainwala added.
