Gold reclaims all-time high of ₹89,400/10 gm on US tariff threats and geopolitical uncertainty

Gold prices on Wednesday climbed further by ₹900 to touch its recent all-time high of ₹89,400 per 10 gm in the national capital amid positive global trends for the yellow metal, according to the All India Sarafa Association. The precious metal hit its all-time high on February 14, rallying by ₹1,300 to reach ₹89,400 per 10 gm in the local markets.

Prices of gold fluctuate with changing global dynamics, and its safe-haven nature increases its appeal in times of rising geopolitical tensions and market fluctuations. With ongoing tariff threats by US President Donald Trump and major corrections in the equity markets in India, domestic gold prices have been going through the roof.

On Tuesday, gold of 99.9% purity ended at ₹88,500 per 10 grams. So far this year (CY25), gold prices have surged by as much as ₹10,010, or 12.6%. The precious metal climbed to the current price of ₹89,400 from ₹79,390 grams on January 1 in less than two months.

Gold of 99.5% purity also reclaimed its all-time high on Wednesday, increasing by ₹900 to ₹89,000 per 10 gm. It ended at ₹88,100 per 10 gm on Tuesday. Silver prices also jumped by ₹600 to reach ₹99,600 per kg on Wednesday.

Experts suggested that the yellow metal extended its gains today fueled by safe-haven demand and relentless buying amid tariff threats combined with geopolitical uncertainty.

Moreover, in futures trade on the Multi Commodity Exchange (MCX), gold contracts for April delivery grew by ₹479 to hit a record high of ₹86,592 per 10 gm in the afternoon trade. The subsequent month's contract also hit a record of ₹87,320 per 10 gm. Silver futures for March delivery increased by ₹589 to ₹97,437 per kg on the MCX.

"Gold continued its upward momentum. Persistent global uncertainty due to tariffs has reinforced gold's status as a safe-haven asset, with banks and funds maintaining high allocations," Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said.

Comex gold futures for April delivery grew by $12 to hover near the record high at $2,960.99 per ounce. Last week, it hit a lifetime high of $2,968.50 per ounce in the overseas markets. Comex silver futures in the Asian market hours also traded higher at $33.61 per ounce.

"Investors are awaiting the US Fed Reserve's Federal Open Market Committee's (FOMC) January monetary policy meeting minutes, and building permit data to be released later on Wednesday,” HDFC Securities' Senior Analyst of Commodities Saumil Gandhi said.

The meeting minutes and data release are expected to further boost the gold market.