New Delhi, Jan 21: Gold futures surged sharply on Wednesday, hitting an all-time high of Rs 1,58,339 per 10 grams on the Multi Commodity Exchange (MCX), tracking a strong rally in global markets where prices breached the USD 4,800 per ounce mark amid rising demand for safe-haven assets.
Gold futures for February delivery jumped by Rs 7,774, or 5.16 percent, marking the third consecutive session of gains. On Tuesday, gold had already crossed the Rs 1.5 lakh per 10-gram level in futures trade. Over the past three sessions, prices have climbed by Rs 15,822, or 11.10 percent, from Rs 1,42,517 per 10 grams recorded on January 16.
Silver also continued its upward momentum, hitting a fresh record on the MCX. Silver futures for the March contract rose by Rs 11,849, or 3.66 percent, to Rs 3,35,521 per kilogram.
According to Rahul Kalantri, Vice-President (Commodities) at Mehta Equities Ltd, the rally in gold and silver is being driven by heightened global uncertainty and escalating trade war tensions, prompting investors to move away from riskier assets.
In the international market, Comex gold futures crossed the USD 4,800 per ounce level for the first time, with February contracts gaining USD 113.4, or 2.4 percent, to trade at USD 4,880.9 per ounce. Comex silver futures for March were trading slightly higher at USD 94.79 per ounce, after touching a record high of USD 95.53 per ounce in the previous session.
Market experts said the sharp rise in bullion prices has been fueled by sell-offs in global equity markets and renewed geopolitical concerns, including US ambitions related to Greenland. Uncertainty was further amplified after the US Supreme Court deferred its decision on the legality of Trump-era tariffs.
Analysts also pointed out that the weakness of the Indian rupee against the US dollar has added to domestic price gains, as a weaker rupee makes gold imports more expensive.
The rally, experts said, continues to be supported by strong macroeconomic factors such as expectations of monetary policy easing by the US Federal Reserve, declining bond yields, and ongoing global geopolitical risks.
