Gold continues record run, breaches Rs 91k level

New Delhi, Mar 18 (PTI) Gold prices climbed by Rs 500 to hit another record high of Rs 91,250 per 10 grams in the national capital on Tuesday driven by sustained buying by stockists and retailers amid a strong trend overseas, according to the All India Sarafa Association.

On Monday, the precious metal of 99.9 per cent purity rallied by Rs 1,300 to hit a fresh peak of Rs 90,750 per 10 grams.

The yellow metal of 99.5 per cent purity advanced by Rs 450 to hit a lifetime high of Rs 90,800 per 10 grams against the previous close of Rs 90,350 per 10 grams.

"Gold extended gains on Tuesday and touched a fresh record high in the international market as well as the domestic market.

"The precious metal remains an attractive option for safe-haven flows due to uncertainties surrounding US President Donald Trump's policies, fears of a US recession, and geopolitical uncertainty," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

Further, the recent weaker US macro data has also bolstered expectations that the US Federal Reserve (Fed) will cut interest rates multiple times this year, further supporting the non-yielding yellow metal, Gandhi added.

However, silver prices traded flat at Rs 1,02,500 per kg, also a historic high.

Meanwhile, gold futures jumped by Rs 649 or 0.73 per cent to establish a fresh peak of Rs 88,672 in the afternoon trade on the Multi Commodity Exchange.

"Gold continues its upward momentum in MCX. The overall sentiment remains uncertain amid heightened geopolitical tensions, with President Trump vowing to persist with US strikes on Yemen's Houthis unless their Red Sea attacks cease," Jateen Trivedi, VP Research Analyst of Commodity and Currency, LKP Securities, said.

This instability in the Middle East, coupled with China's plans for additional economic stimulus, has further fueled safe-haven demand for gold, Trivedi said.

On the global front, spot gold increased to hit a fresh high of USD 3,028.49 per ounce. Similarly, Comex gold futures quoted higher to hit a record peak of USD 3,037.26 per ounce.

"Gold prices have surged to a record high as mounting recession fears grip the US economy, with investors keenly awaiting the Fed's policy decision for further clarity," Chintan Mehta, CEO, of Abans Financial Services Ltd, said.

According to Kaynat Chainwala, AVP-Commodity Research, Kotak Securities, gold prices this week will also be influenced by the upcoming Fed policy meeting, where investors are hoping for guidance on future monetary policy amid growing economic concerns. PTI HG HG MR MR

Source: PTI