Gold prices surged in India on Tuesday, driven by safe-haven demand and expectations for the US Federal Reserve’s upcoming meeting. Silver prices also rose.
On Monday, the precious metal of 99.9 per cent purity had ended at Rs 97,350 per 10 grams.
Extending the gains for the third straight day, gold of 99.5 per cent purity jumped Rs 2,400 to Rs 99,300 per 10 grams on Tuesday. It had closed at Rs 96,900 per 10 grams in the previous close.
“Gold prices edged higher as safe-haven demand returned following President Donald Trump’s announcement of fresh tariff plans.
“The proposed measures include duties on pharmaceutical imports and a steep 100 per cent tariff on movies produced outside the United States — a move that stoked concerns over renewed trade tensions and their potential impact on global growth,” Abans Financial Services’ Chief Executive Officer Chintan Mehta said.
As per the Sarafa Association, silver prices also climbed Rs 1,800 to Rs 98,500 per kg.
According to experts, market participants will focused on Wednesday’s outcome of the US Federal Reserve’s FOMC (Federal Open Market Committee) policy meeting and Fed Chair Jerome Powell’s commentary on growth and inflation.
Meanwhile, the most traded June contract for gold futures rallied Rs 1,951, or 2.06 per cent, to Rs 96,600 per 10 grams on the Multi Commodity Exchange.
Globally, spot gold sprinted higher by USD 45.65, or 1.37 per cent, to USD 3,379.77 per ounce.
“Gold reclaimed the USD 3,350-level on Tuesday as safe haven flows lent support for precious metals for the second consecutive day amid geopolitical worries stemming from the prolonged Russia-Ukraine war, ongoing conflicts in the Middle East, and fresh tensions between India and Pakistan, which lifted the safe-haven precious metal.
“Additionally, weakness in the US dollar also benefits the precious metals and contributes to the uptrend,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
Spot silver in the overseas markets increased 1.64 per cent to USD 33 per ounce.