March 4th 2025.
In the bustling city of New Delhi, gold prices skyrocketed on Tuesday, reaching an impressive Rs 89,000 mark. This surge was attributed to an increase in buying from jewellers and stockists, along with strong global trends, as reported by the All India Sarafa Association. With a purity of 99.9%, the value of gold rose by a whopping Rs 1,100 to reach Rs 89,000 per 10 grams, from its previous closing rate of Rs 87,900 per 10 grams. Similarly, gold with a purity of 99.5% saw an impressive hike of Rs 1,100, reaching Rs 88,600 per 10 grams, compared to its previous rate of Rs 87,500 per 10 grams.
According to traders, the surge in bullion prices was triggered by the confirmation of tariffs on Canada, Mexico, and China by US President Trump, set to take effect on Tuesday. This announcement was met with retaliatory measures from China and Canada, escalating trade tensions throughout North America. In the midst of this, silver prices also saw a significant increase, rising from Rs 1,500 to Rs 98,000 per kg, driven by both industrial demand and the surge in gold prices. The previous day, silver had closed at Rs 96,500 per kg.
On the Multi Commodity Exchange, gold contracts for April delivery saw an increase of Rs 806, rising to Rs 86,190 per 10 grams. According to Jateen Trivedi, VP Research Analyst for Commodity and Currency at LKP Securities, the positive trend in gold was supported by a 1% surge in COMEX gold prices, but was slightly hindered by minor rupee appreciation. Trivedi attributed this rally to fresh tariff retaliations, with both Canada and China imposing tariffs on the US, leading to an increase in safe-haven demand.
Meanwhile, on the global front, Comex gold futures for April contracts saw an increase of USD 32.70 or 1.13%, reaching USD 2,933.80 per ounce. Similarly, spot gold saw a rise of nearly 1%, reaching USD 2,921.42 per ounce. According to Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, the release of lower-than-expected ISM Manufacturing PMI data on Monday added to the disappointing signs on the macro front. This news, coupled with last week's weaker housing data, rising unemployment claims, and declining consumer expenditure, raised hopes of a potential cut in interest rates by the US Federal Reserve, increasing the appeal of gold as a non-yielding asset.
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