Gold jumps ₹2,630 to fresh all-time highs on rate cut hopes, silver regains record levels

Gold prices rallied up to ₹2,630, or nearly 3%, this week to hit its fresh lifetime highs on Thursday on the back of trade uncertainties and Fed rate cut expectations. A weak US dollar and the safe-haven demand also helped the precious metal post gains for the second week in a row.

The 24K gold rose by ₹2,630 this week to a record high ₹89,817 per 10 grams in Mumbai and other cities. In Delhi, the metal scaled a lifetime high of ₹89,963 per 10 grams on Thursday.

The 22K gold variety also advanced ₹2,400, or 2.9%, weekly to a new high of ₹82,337 in Mumbai and a record ₹82,483 per 10 grams in Delhi on Thursday.

Silver prices also advanced nearly 2% or ₹4,100 this week to settle above ₹1,03,000 mark at ₹1,03,100 per kg in Mumbai and Delhi following heavy buying on Friday.

Dovish Fed, rate cut hopes helped gold recover early losses

Gold started the holiday-shortened week on a flat note and traded almost unchanged on Monday. A rebound in US bond yields last weekend had hit the gold’s appeal as a hedge against inflation.

Gold prices slipped by ₹330 to ₹87,490 per 10 grams on Tuesday as a rebound in the US dollar from multi-month lows triggered profit-taking in the metal.

The metal recovered by ₹490 per 10 grams on Wednesday, following growing recession fears in the US after trade policy flip-flops. US trade partners like the EU and Canada toughened their stand on retaliatory tariffs even as President Donald Trump stuck to high duties to seek trade balance.

The metal advanced ₹600 to hit all-time highs on Thursday as cooler-than-expected inflation raised hopes of a rate cut by the dovish Federal Reserve. The US Fed will announce its policy review on March 19.

Most local markets will remain closed on Friday on account of the festival of Holi.

Gold hit new $3,000 an ounce in global markets

In global markets, gold prices rose by over 2.57% this week to trade near all-time high levels, boosted by a four-day advance to Friday. The Spot Gold prices hit $3000 an ounce in global markets on Friday as trade war worries, expectations of Fed rate cuts after benign inflation data, and a bearish US dollar boosted the precious metal.

Silver rallies ₹1,900 to regain record high levels

Silver prices jumped ₹1,900 this week to regain the record high levels of ₹101,000 per kg in major Indian cities on Thursday. The metal started the week on a low note, declining by ₹100 on Monday.

Recession fears and a rebound in the US dollar weighed on the metal, dragging it down by ₹1,000 per kg to ₹98,000 per kg on Tuesday. A fall back in the US dollar helped the metal regain losses on Wednesday as it jumped ₹2,000 per kg. The metal added another ₹1,000 per kg to the all-time high of ₹1,01,000 per kg on Thursday. Silver had traded at this level earlier on February 25.

Trade war worries, weak dollar major push for precious metals

Investors are worried about the impact of Trump’s high tariff stance on the US economy, which has acted as a major push for gold. Back and forth by Trump on the imposition of tariffs on trade partners also added to the uncertainty fuelling demand for gold.

Meanwhile, recent data showed that inflation eased in the US, which raised expectations thatthe US Fed may cut rates several times this year. The cooling labour market also supported the hopes of rate cuts. Dovish Fed hopes have dragged the US Dollar to near a multi-month low.