Gold prices this week: Yellow metal rises 1.6% to hit all-time high, extends weekly run

Gold prices advanced 1.6% to hit an all-time high this week, marking the fifth straight week of gains. The precious metal rallied by ₹1,310 per 10 grams, or 1.6%, on a weekly basis following a ₹1,620 per 10 grams rise in the past week.

Gold prices have been rising since the week ended on December 7, 2024, on Fed rate cut hopes, geopolitical worries and uncertainty around the global tariff war.

Gold hit an all-time high of ₹82,420 per 10 grams in major Indian cities on Friday. Silver prices however edged up by ₹1,000 per kg or 1% to ₹97,500 this week amid easing dollar value.

Domestic gold prices

Gold prices gained ₹120 per 10 grams to trade above ₹81,230 on Monday after US President Donald Trump’s threat to impose tariffs on Canada, Mexico and China led to uncertainty on tariff war.

The precious metal spurted by ₹860 to breach ₹82,000 per 10 grams for the first time in domestic markets on Wednesday. After a brief pause on Thursday, the metal rallied by ₹330 to hit an all-time high of ₹82,420 per 10 grams (24K gold) in Mumbai and other cities. In Delhi, the metal hit a record high of ₹82,570 per 10 grams.

The 22K gold touched the lifetime high of ₹75,550 per 10 grams in Mumbai while in Delhi at ₹75,700 per 10 grams.

Silver gains 1% this week

Silver prices moved in a tight range this week and gained ₹1,000 per kg to ₹97,500 on Friday. Silver prices remained flat on most trading days due to mixed cues.

International prices

Spot gold in global markets advanced to a nearly two-month high of $2,771 an ounce this week. The precious metal started the week near $2,725 an ounce level and strengthened around 1.7% on a weekly basis to hit ₹2771 an ounce on Friday.

Rate cut hopes, weak dollar aided gold prices

Gold prices are on course to hit all-time high levels of $2,790 an ounce as bulls remain active on easing worries about sudden tariff hikes.

US President Donald Trump’s comments on Chinese tariffs at the WEF Summit in Davos supported the precious metal. Trump also called for lower interest rates which bolstered hopes of more rate cuts by the US Federal Reserve this year.

The US dollar index eased to 107 levels following Trump’s comment on interest rates at Davos, increasing the hedge appeal of the precious metal.

On the other hand, the Indian rupee traded near 86.50 to the dollar this week which kept the gold prices at high levels. A weaker rupee makes gold imports costlier.