Gold prices increase Rs 200 to Rs 99,020 per 10 grams on Wednesday, driven by sustained purchase from stockists amid heightened safe-haven demand.
The precious metal of 99.9 per cent purity had settled at Rs 98,820 per 10 grams in the last session.
Gold of 99.5 per cent purity also witnessed an uptick, rising Rs 100 to Rs 98,600 per 10 grams (inclusive of all taxes) from Rs 98,500 in the previous market close.
“Gold traded with a moderate positive bias on Wednesday as safe-haven demand continued to push precious metals higher,” said Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities.
The rise in bullion prices came amid renewed global trade tensions. US President Donald Trump on Tuesday threatened to impose fresh tariffs on pharmaceutical imports, starting with smaller levies but potentially escalating up to 250 per cent. He also indicated that an announcement regarding tariffs on semiconductors and chips would follow soon.
“This tariff-related uncertainty added a risk premium on precious metals,” Gandhi explained.
Silver also mirrored the upward trend. Prices climbed Rs 500 to Rs 1,12,500 per kilogram (inclusive of all taxes), compared to Rs 1,12,000 per kg in the previous session. Traders are now eyeing speeches by US Federal Reserve officials later in the day, which could offer fresh signals on the future trajectory of bullion prices.
Despite domestic gains, the international market reflected a contrasting trend. Spot gold slipped by USD 17.51, or 0.52 per cent, to USD 3,363.35 per ounce in New York.
“Gold prices were weak as the precious metal in the international markets saw weak cues below USD 3,360 per ounce, with the dollar index showing a positive rally in the last few days,” said JateenTrivedi, VP Research Analyst – Commodity and Currency, LKP Securities.
Spot silver in the global market edged down 0.12 per cent to USD 37.76 per ounce.
Trade tensions continue to dominate market sentiment. Trump has threatened to impose tariffs of up to 35 per cent on the European Union if it fails to meet its commitments, escalating uncertainty in the global economy.
“Meanwhile, investors are closely monitoring US trade negotiations with other countries, as any new tariffs could further weigh on the economy, driving inflation higher, and in turn, support gold prices,” said Chintan Mehta, CEO of Abans Financial Services.
The interplay of domestic demand, global trade tensions, and currency fluctuations is likely to keep bullion markets volatile in the near term. While domestic gold prices are benefiting from safe-haven buying, international markets remain sensitive to the dollar’s movements and ongoing tariff-related developments.
Investors will continue to track macroeconomic cues, central bank statements, and global trade policies for short-term direction in gold and silver prices.
