Gold prices hit record highs, rising for the 8th consecutive week amid strong local demand and weak dollar

Gold prices advanced 0.56% this week marking the eighth consecutive week of gains as investors rushed for the safe-haven asset amid negative returns from equity markets.

The 24K gold rose by ₹490 this week to ₹87,160 per 10 grams in Mumbai and other cities. In Delhi, the metal closed at ₹87,310 per 10 grams on Friday.

The 22K gold also advanced ₹450, or 0.56%, on a weekly basis to ₹79,900 in Mumbai and settled at ₹80,050 per 10 grams on Friday.

Silver prices also advanced ₹1,000 this week to settle above ₹1,00,000 mark at ₹1,00,500 per kg in Mumbai and Delhi following heavy buying on Friday.

Gold rally on most days in local markets amid firm global cues

Gold prices gained on most days this week in line with global trends and firm local demand. The precious metal started the week on a firm note, rising by ₹390 to breach ₹87,000 per 10 grams for the first time in local markets.

On Tuesday, gold prices rose by ₹320 to hit a lifetime high of ₹87,380 per 10 grams in Mumbai and ₹87,530 per 10 grams in Delhi. The 22K variety scaled a lifetime high of ₹80,250 per 10 grams in Delhi and ₹80,100 per 10 grams in Mumbai, breaching the 80,000 mark for the first time.

The record gains attracted profit booking in the precious metal, dragging the prices by ₹700 on Wednesday.

The metal rebounded on Thursday and Friday to recover the losses and end the week on a high.

Gold hit record $2,900 an ounce in global markets

In global markets, gold prices advanced around 0.8% despite heavy profit-taking on Friday ahead of the FOMC meeting. The Sport Gold closed the week at $2,883.13 an ounce after scaling $2,900 levels for the first time. The yellow metal hit a record $2,900 an ounce on Monday and scaled a lifetime high of $2,943 on Tuesday on safe-haven demand and a weak dollar. The metal stayed in green on Wednesday and Thursday but fell to heavy profit-taking on Friday, retreating by 1.57% in a single day.

Silver gains ₹1,000 in a quiet week

Silver prices advanced ₹1,000 this week in a range-bound trading. The metal remained flat most days due to weak local demand and sideways trade in global markets. A sharp correction in the US dollar on Friday boosted silver bulls with the metal regaining ₹1,00,000 per kg level in the local markets.

The safe-haven demand amid trade policy uncertainty and weak rupee among tailwinds.

Due to US President Donald Trump’s reciprocal tariffs on US allies, trade policy uncertainty has boosted the metal’s safe-haven appeal. Investors are rushing to gold amid volatile stock markets. The US dollar retreated more than 1% this week as higher tariffs are expected to hit the US economy as well if its trade partners resort to tariff war as promised by the EU leaders. The US is currently evaluating tariff policy for allies and finalising the action by April.

Weak rupee flares up local prices

The rupee fell to all-time lows near 88 levels this week due to foreign fund outflows, making the dollar-priced metal pricier. The rupee recovered later in the week due to the RBI’s possible intervention but weak currency sentiment is still bolstering the gold bulls.

Marriage season demand aids price

A spike in marriage season demand after the start of new Hindu month on February 12 supported the metal at record-high levels. February has a busy marriage season as per Hindu calendar, which is expected to feed gold bulls.