Silver Prices Rebound, Gold Surges Amid Global Uncertainty
New Delhi- On Friday, silver prices in the national capital rebounded by Rs 6,500 to reach Rs 2,50,000 per kilogram, while gold surged to Rs 1,41,700 per 10 grams amidst renewed demand for the safe-haven asset due to global uncertainty, as reported by the All India Sarafa Association.
The white metal had experienced a significant decline of Rs 12,500, or nearly 5 per cent, in the previous session, falling to Rs 2,43,500 per kilogram due to profit booking by traders after reaching a record high of Rs 2,56,000 per kg just a day before.
Gold of 99.9 per cent purity witnessed a jump of Rs 1,200 to reach Rs 1,41,700 per 10 grams (inclusive of all taxes) compared to the previous closing price of Rs 1,40,500 per 10 grams.
According to Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, the rise in gold prices was driven by renewed haven demand and positive inflows from exchange-traded funds. Market sentiments were influenced by threats from US President Donald Trump against Iran and anticipation of volatility ahead of US Supreme Court rulings on tariff decisions.
Gandhi further emphasized that the current scenario strengthened hedging demand for gold as investors sought a safe haven amidst increasing uncertainty.
However, an expert cautioned that a ruling against tariffs by the court could potentially ease concerns over a global trade war, limiting the upside potential for gold and silver prices in the short term.
Internationally, spot gold was marginally higher at USD 4,479.38 per ounce, while silver rose by USD 1.37, or 1.79 per cent, to USD 78.38 per ounce. Silver had experienced a sharp decline earlier before settling at USD 76.92 per ounce.
Kaynat Chainwala, AVP Commodity Research at Kotak Securities, pointed out that the safe-haven demand for gold and silver was supported by reports of potential steep tariffs by US President Trump on countries purchasing Russian oil, which could escalate trade tensions with major buyers such as China, India, and Brazil.
Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, noted that despite index rebalancing-led selling and positive US ISM services data, gold prices remained resilient in the face of global uncertainties.
