Gold Prices Hit Record Highs in Delhi Amid Global Rally

Gold prices reached a new all-time high in New Delhi on Monday, driven by a significant surge in global markets and strong demand from investors seeking safe-haven assets. The All India Sarafa Association reported that gold prices rose by Rs 1,685 to touch a record Rs 1,38,200 per 10 grams in the capital city. Additionally, silver also experienced a notable increase, reaching an unprecedented high of Rs 2,14,500 per kilogram, inclusive of all taxes. The surge in silver prices, up by Rs 10,400 per kilogram, was attributed to robust buying interest and positive global price trends. Market analysts highlighted the prevailing bullish sentiment in the bullion market, with both gold and silver continuing their upward trajectory to achieve fresh record highs amidst growing economic uncertainties in the United States. In the international market, spot gold soared by $80.85, or close to 1.9 percent, to hit a new peak of $4,420.35 per ounce. Analysts observed a significant uptick in investor interest in precious metals, driven by expectations of further interest rate cuts in the US and escalating fiscal concerns. The anticipation of lower interest rates typically diminishes the opportunity cost of holding gold, rendering it more appealing to investors. Earlier in the day, spot gold had already climbed to $4,383.73 per ounce on reports suggesting potential future interest rate cuts by the US Federal Reserve, alongside robust demand for safe-haven assets. Gold has witnessed a substantial increase this year, surging by approximately 67 percent thus far, propelled by geopolitical tensions, trade disputes, and global economic instability. Analysts noted that both gold and silver prices had advanced notably last week and continued this momentum into the new week by achieving fresh record highs in both domestic and international markets, following the third interest rate cut of 25 basis points by the US Federal Reserve.