Gold prices rose by Rs 250, reaching a record high of Rs 78,700 per 10 grams on Monday, driven by steady demand from jewellers and strong trends in international markets. The precious metal had previously closed at Rs 78,450 per 10 grams on Friday.
In contrast, silver prices fell by Rs 200 to Rs 94,000 per kg, down from Rs 94,200 per kg on Friday, as reported by the All India Sarafa Association. Meanwhile, gold with 99.5% purity saw a rise of Rs 200, reaching an all-time high of Rs 78,300 per 10 grams, compared to its previous closing price of Rs 78,100 per 10 grams. Traders attributed the increase in gold prices to heightened domestic demand from stockists and retailers.
Additionally, the drop in equity markets contributed to the rally in precious metals, prompting investors to seek safe-haven assets like gold. During Asian trading hours, Comex gold was trading 0.14% higher at USD 2,671.50 per ounce.
"COMEX gold remains steady, as tempered expectations for aggressive interest rate cuts by the US Federal Reserve counter safe-haven demand amid ongoing tensions in the Middle East. "Gold prices may continue to trade in a narrow range as caution prevails ahead of upcoming US inflation numbers," Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, said. On the other hand, silver fell 0.61 per cent to USD 32.20 per ounce in the international markets.