Gold Tsunami: There was a tremendous jump in the price of gold on Friday. The price of 24 carat gold in the national capital rose by Rs 6,250 per 10 grams in a single day.
After falling heavily for four consecutive days, the price of gold of 99.5 per cent purity rose by Rs 6,250 to an all-time high of Rs 96,000 per 10 gram, while its previous close price was Rs 89,750 per 10 gram.
Silver prices also witnessed a massive jump and went up by Rs 2,300 per kg, PTI reported.
In Delhi, the price of silver reached Rs 95,500 per kg on Friday, influenced by global trends. In the last session (Wednesday), it closed at Rs 93,200 per kg. It is worth noting that the markets were closed on Thursday due to Mahavir Jayanti.
Gold Tsunami: Strong Safe-Haven Demand Pushes Gold to Record Highs
According to reports, experts believe that the growing trade tensions between the US and China have boosted the demand for gold as a safe investment, pushing global prices to an all-time high. This surge in the international market has also impacted domestic gold prices.
Investment banking firm UBS said ongoing concerns in financial markets – such as trade and economic uncertainties, inflation fears, recession risks and geopolitical tensions – would continue to increase gold’s attractiveness among investors.
What Experts Say
Kaynat Chainwala, AVP, Commodity Research, Kotak Securities, said COMEX gold prices hit a record high on the back of rising safe-haven demand amid escalating US-China trade tensions.
Globally, gold prices had earlier crossed $3,200 an ounce on April 2 but later witnessed a fall due to profit-booking, he said.
US-China Clash Sends Gold Soaring
Last Thursday, the Trump administration announced tariffs of up to 145% on Chinese goods, to which China responded by imposing tariffs of up to 125%.
Kaynat Chainwala said that this intense retaliatory reaction and growing concerns about a global economic slowdown weakened the US dollar, pushing it below the 100 mark. This, in turn, provided strong support to bullion prices, further accelerating the rally.
