Daijiworld Media Network- New Delhi
New Delhi, Feb 7: Continuing its upward momentum, gold prices surged by Rs 270 to reach an all-time high of Rs 86,070 per 10 grams in the national capital on Thursday. This sharp rise comes as the Indian rupee fell to historic lows and equity markets ended in losses.
Gold of 99.5% purity also saw an increase, climbing to Rs 85,670 per 10 grams, up from Rs 85,400 on Tuesday. The bullion markets remained closed on Wednesday due to the Delhi Assembly elections.
Market experts attribute the rally to robust demand from local jewellers, a depreciating rupee, and negative trends in the stock market. Since the beginning of this year, gold prices have risen by Rs 6,680 per 10 grams, reflecting an 8.41% increase due to strong safe-haven demand and favorable global cues.
On the other hand, silver prices remained unchanged at Rs 96,500 per kg. However, futures trading saw declines, with gold’s April contract falling by Rs 41 to Rs 84,526 per 10 grams on the Multi Commodity Exchange (MCX). Silver futures for March delivery dropped by Rs 934 or 0.97% to Rs 95,031 per kg.
The rupee depreciated further, closing 14 paise lower at a record 87.57 against the US dollar. Analysts suggest that the Indian currency faced pressure amid expectations of an interest rate cut by the Reserve Bank of India (RBI) during its monetary policy meeting on Friday.
Jateen Trivedi, Vice President, Research Analyst – Commodity and Currency at LKP Securities, noted that market participants are keenly observing the RBI’s policy announcement and upcoming US economic data, including non-farm payrolls and unemployment figures.
Internationally, gold prices retreated after touching record highs. Comex gold futures for April delivery declined by USD 12 per ounce or 0.41% to USD 2,881 per ounce, after hitting a fresh peak of USD 2,906 per ounce on Wednesday.
Experts believe that movements in the rupee and global gold prices will play a crucial role in determining the future trajectory of the yellow metal.