Gold Prices Rise to ₹91,050 Per 10g in National Capital Amid Strong Global Trends

New Delhi: Gold prices surged by ₹365, reaching ₹91,050 per 10 grams in the national capital on Thursday, continuing their upward trajectory for the second consecutive day. The price of gold, which had closed at ₹90,685 per 10 grams on Wednesday, showed a notable rise, driven by strong trends in overseas markets, according to the All India Sarafa Association.

Gold of 99.5% purity also rose by ₹365, reaching ₹90,600 per 10 grams, up from ₹90,235 per 10 grams the previous day. The increase in gold prices comes as global risk sentiment continues to rise, fueled by the new auto tariffs announced by U.S. President Donald Trump earlier this week. The tariffs have added to the uncertainty in global markets, strengthening the demand for safe-haven assets like gold.

Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, stated, "Gold maintains its gains as the global risk sentiment has been increased following the new auto tariffs announced by the US President."

Silver prices also experienced a boost, climbing by ₹200 to ₹1,01,700 per kg, up from ₹1,01,500 per kg on Wednesday.

Global Markets Impact

Meanwhile, gold futures for April delivery surged by ₹828 or 0.94%, trading near a record high of ₹88,466 per 10 grams on the Multi Commodity Exchange (MCX). On March 20, the yellow metal reached a lifetime high of ₹89,796 per 10 grams, further highlighting the upward trend in its value.

In the international markets, spot gold prices saw a significant jump, climbing by USD 34.77, or 1.15%, to trade near a record high of USD 3,054.05 per ounce. Gold futures for April delivery in the Asian market also rose to hit a fresh peak of USD 3,094.85 per ounce.

Geopolitical Tensions Drive Demand for Safe-Haven Assets

Experts suggest that gold's surge is largely driven by the uncertainty surrounding the U.S. economy, particularly with the anticipated reciprocal tariffs from the U.S. on April 2, as well as new geopolitical risks. "Gold prices surged near USD 3,050 per ounce as expectations of lower U.S. GDP data and the anticipated reciprocal tariffs from the U.S. on April 2 fueled uncertainty," said Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities.

In addition to these factors, threats from the U.S. towards the Eurozone over potential support for Canada have heightened market risks, further increasing demand for gold as a safe-haven asset. According to Chintan Mehta, CEO of Abans Financial Services, "With rising geopolitical risks in the region, gold continues to shine as the preferred safe-haven asset, supporting the ongoing rally."

Market Outlook

Investors are eagerly awaiting the U.S. Personal Consumption Expenditures (PCE) data set to be released on Friday, which is a key indicator for the U.S. Federal Reserve’s next monetary policy moves. Market participants will also closely monitor speeches from Federal Reserve officials for insights into the central bank’s future policy outlook.

The ongoing geopolitical risks and economic uncertainties are expected to keep gold prices strong, as central banks continue to accumulate gold to hedge against global instability. As the market continues to react to these events, gold remains a key asset in investor portfolios, maintaining its status as a preferred store of value.

Conclusion

The rise in gold prices reflects the current global economic uncertainty and the growing demand for safe-haven assets like gold. As tensions continue to mount internationally, gold remains a popular investment choice, providing a hedge against the risks in the market. With geopolitical risks escalating, gold’s upward trajectory is expected to continue in the near future.