Daijiworld Media Network- Chandigarh
Chandigarh, Apr 22: In a significant development, gold prices in India have surged past the Rs 1 lakh mark for 10 grams of 24-carat purity, reaching record highs as global market uncertainties drive investors toward safer assets such as gold.
As per reports, pure 24-carat gold is now priced over Rs 10,000 per gram in major cities like Delhi, Mumbai, and Kolkata. The current price for 24-carat gold in Delhi stands at Rs 10,150 per gram, while other cities like Noida, Gurugram, Chennai, Bengaluru, and Kolkata report prices of Rs 10,135 per gram.
Gold, in its purest form, is typically used for investment purposes and is considered a hedge against inflation and market volatility. However, for jewelry making, 22-carat gold is more commonly used due to its durability. As for 22-carat gold, it is priced slightly lower, with rates at Rs 9,305 per gram in Delhi and Rs 9,290 in Mumbai and Kolkata.
The surge in gold prices is also reflected on the Multi Commodity Exchange (MCX), where the most-traded June delivery contracts of gold rose by Rs 1,899 or nearly 2 percent, touching a record high of Rs 99,178 per 10 grams. Later, the June contract traded at Rs 98,880 per 10 grams, marking an increase of Rs 1,601 or 1.65 percent, with an open interest of 22,687 lots.
In addition, the August contract of gold jumped by Rs 1,848 or 1.89 percent to reach a fresh peak of Rs 99,800 per 10 grams. The October contract broke the Rs 1 lakh mark, rising by Rs 2,000 or 2 percent to hit an all-time high of Rs 1,00,484 per 10 grams.
Analysts attribute the surge in gold prices to concerns surrounding US monetary policy. After President Donald Trump announced plans to overhaul the Federal Reserve, the uncertainty in global financial markets, particularly the ongoing US-China trade war, further fueled the demand for gold.
Globally, gold futures also hit a fresh peak of USD 3,504.12 per ounce, before retracting to USD 3,490.72 per ounce, marking an increase of USD 65.42 or 1.91 percent.
Rahul Kalantri, Vice-President of Commodities at Mehta Equities Ltd, commented, “Gold prices crossed USD 3,500 per ounce levels internationally and crossed the 97,000 mark in domestic markets. This surge is driven by continued uncertainty in the global financial landscape and the escalating US-China trade tensions.”
In addition, Kalantri explained that the recent slip in the dollar index to three-year lows was partly due to the conflict between President Trump and Federal Reserve Chair Jerome Powell regarding interest rates. On Monday, Trump reiterated his call for the Federal Reserve to cut interest rates, warning of potential economic slowdown if the Fed does not act swiftly.
The fluctuation in gold prices highlights the volatility in the financial markets amid the political and economic challenges faced by the US.