Gold continues bull run, climbs ₹270 to hit fresh peak of ₹86,070 per 10 gm

Continuing the record-setting trend, gold prices climbed ₹270 to hit a new lifetime high of ₹86,070 per 10 grams in the national capital on Thursday as the rupee slid to all-time low levels and stock markets closed with losses.

Gold of 99.5% purity gained ₹270 to hit a new high of ₹85,670 per 10 grams. The metal had finished at ₹85,400 per 10 grams on Tuesday. Bullion markets were closed on Wednesday due to Delhi Assembly elections.

Sustained buying by local jewellers, a weak rupee and losses in the equity market aided the rally in the yellow metal, traders said. So far this year, the yellow metal has soared by ₹6,680 per 10 grams or 8.41% on safe-haven demand and firm global trends.

However, silver prices remained flat at ₹96,500 per kg.

On Thursday, the rupee plunged 14 paise to close at an all-time low of 87.57 (provisional) against the US dollar as rising odds of a rate cut by the Reserve Bank of India in its monetary policy meeting on Friday pressurised the rupee. A weak rupee makes the dollar-priced gold imports dearer.

The precious metal, however, dropped in futures trade.

The April month contract of gold fell ₹41 to ₹84,526 per 10 grams on MCX, retreating from record levels hit on Wednesday.

Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said, "Market participants remain focused on the upcoming RBI monetary policy and the US non-farm payrolls and unemployment data scheduled for release on Friday.

"Rupee movement and Comex gold trends will play a crucial role in determining the next price action for gold," Trivedi added.

Silver futures for March delivery declined ₹934 or 0.97% to ₹95,031 per kg on the Multi Commodity Exchange (MCX).

In the global markets, Comex gold futures for April delivery decreased by $12 per ounce or 0.41% to $2,881 per ounce. On Wednesday, the Comex futures surged to hit another high of $2,906 per ounce.