New Delhi: Gold prices continued their upward trend for the fourth consecutive session Tuesday, surging Rs 1,899 to hit an all-time high of Rs 99,178 per 10 grams, driven by persistent safe-haven demand.
On the Multi Commodity Exchange (MCX), the most-traded June delivery contracts of the precious metal zoomed by Rs 1,899 or nearly 2 per cent to hit a record high of Rs 99,178 per 10 grams in the initial trade.
Later, the June contract traded at Rs 98,880 per 10 grams, up by Rs 1,601 or 1.65 per cent, with an open interest of 22,687 lots.
The August contract of the metal jumped by Rs 1,848 or 1.89 per cent to hit a fresh peak of Rs 99,800 per 10 grams.
In addition, the October contract breached the Rs 1 lakh mark for the first time on the MCX, jumped by Rs 2,000 or 2 per cent to hit a record high of Rs 1,00,484 per 10 grams on the bourse.
Analysts said the surge in the precious metal was sparked by concerns surrounding US monetary policy, after President Donald Trump unveiled plans to overhaul the Federal Reserve.
On the global front, gold futures rose to hit a fresh peak of USD 3,504.12 per ounce. Later, it pared gains to trade at USD 3,490.72 per ounce, up by USD 65.42 or 1.91 per cent.
“Gold prices crossed USD 3,500 per ounce levels in the international markets for the first time and also crossed 97,000 levels in the domestic markets amid uncertainty in the global financial markets and escalating US-China trade war continue to support prices of precious metals,” Rahul Kalantri, Vice-President of Commodities, Mehta Equities Ltd, said.
On Monday, Trump reiterated his call for the Federal Reserve to cut interest rates, saying the American economy could slow down if the Fed does not cut interest rates immediately.
Gold showed very high price volatility amid uncertainty in the global markets. The dollar index slipped to 3-year lows after the US President Trump and Federal Reserve Chair Jerome Powell’s tussle over interest rate cuts, Kalantri said.
On Friday, White House economic advisor Kevin Hassett said that President Trump and his team were continuing to study whether they could fire Fed Chair Jerome Powell.
Last week, Fed Chair Jerome Powell said that the central bank was not inclined to cut interest rates in the near future, citing the possible inflationary pressures and economic uncertainties stemming from the new tariffs.
PTI
