Gold prices rose by Rs 250 to Rs 80,550 per 10 grams in the national capital on Friday, driven by consistent buying from retailers and stockists, as the rupee hit a record low. The previous session had seen gold priced at Rs 80,300 per 10 grams, according to the All-India Sarafa Association.
Silver, however, remained steady at Rs 93,000 per kg on Friday.
Gold of 99.5% purity continued its upward trend for the fourth consecutive session, gaining Rs 250 to Rs 80,150 per 10 grams, up from Rs 79,900 per 10 grams the previous day. Traders attributed the local price increase to strong overseas demand.
Meanwhile, the rupee weakened by 14 paise, reaching the critical 86-mark against the US dollar for the first time, as it faced pressure from a stronger US dollar and significant foreign fund outflows.
On a weekly basis, gold prices rose by Rs 1,550 (2%) to Rs 80,550 per 10 grams, while silver climbed by 2.5% to Rs 93,000 per kg.
On the MCX, February gold contracts gained Rs 388 (0.5%) to Rs 78,492 per 10 grams, and silver contracts for March delivery rose by Rs 506 (0.55%) to Rs 92,217 per kg.
In the overseas market, Comex gold futures increased by $16.10 (0.6%) to $2,706.90 per ounce.
“Gold extended its rally on Friday on the back of safe-haven demand due to uncertainty around future US monetary policy under President-elect Donald Trump,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
According to Augmont’s Head of Research Renisha Chainani, gold continued its winning streak due to safe-haven demand sparked by worries about Donald Trump’s proposed policies, while the UK faced a budget crisis.
‘The Federal Open Market Committee’s (FOMC) members hinted that more (rate) easing would be appropriate if the data came in as anticipated.
“Market participants will be looking for the upcoming US non-farm payrolls and UoM Consumer Sentiment data for additional economic cues,” Chainani said.
Silver COMEX futures in the Asian market hours shot up 0.6% to $31.20 per ounce.
The strong industrial demand for silver, fuelled by its importance in renewable energy technologies and electronics, has been driving up demand for silver as a safe-haven asset.
According to Dutch multinational ING Bank, the precious metals have had a muted start to 2025 with the market weighing the outlook for the year amid geopolitical tensions, the uncertain path for China’s economic recovery and rising protectionism.
The US election has added more uncertainty to the outlook, with the possibility of tariffs on Chinese goods hanging over the market. Investors fear that these potential US tariffs, along with a stronger dollar, could further push down bullion prices, according to the bank.
(With PTI Inputs)
