Gold Prices Hit Record ₹83,800 Per 10 Grams: Key Drivers Behind the Surge

Safe-haven appeal boosts gold as global uncertainties, muted Treasury yields, and Fed policy contribute to the rally.

January 30, 2025: Gold prices surged to a new all-time high of ₹83,800 per 10 grams in the national capital on Thursday, continuing their upward trajectory for the second consecutive session. Strong global cues have fueled this rally, with both gold and silver prices witnessing significant gains.

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Domestic Price Highlights:

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Gold with 99.9% purity rose by ₹50, reaching ₹83,800 per 10 grams, surpassing the previous record of ₹83,750.
Gold with 99.5% purity also gained ₹50, touching ₹83,400 per 10 grams.
Silver prices surged by ₹1,150 to ₹94,150 per kilogram.

Futures Market Performance:

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Gold futures for February delivery climbed ₹575 (0.72%) to an all-time high of ₹80,855 per 10 grams on the Multi Commodity Exchange (MCX).
April contracts rose ₹541 (0.67%) to reach ₹81,415 per 10 grams.
Silver futures for March delivery increased by ₹1,050 (1.14%), closing at ₹92,916 per kg.

Global Trends:

Comex gold futures jumped $23.65 per ounce (0.84%), reaching $2,817.15 per ounce.
Comex silver futures also climbed 2.06%, trading at $32.04 per ounce during Asian market hours.

What’s Driving the Rally?

Economic Uncertainty:
Concerns over the economic consequences of US President Donald Trump’s trade tariffs and protectionist policies have increased the demand for safe-haven assets like gold.
Muted Treasury Yields:
US Treasury yields remained subdued following the Federal Reserve’s decision to keep interest rates steady at 4.25-4.5%, signaling that rates may stay higher for longer due to inflationary pressures and a strong labor market.
Global Risk Aversion:
Investors are moving away from riskier assets, such as equities, in favor of gold amid global uncertainties.

Expert Insights:

Jateen Trivedi, VP Research Analyst at LKP Securities, highlighted the divergence between domestic and global markets, noting a 2.5% rally in domestic gold prices versus a 0.5% gain in Comex gold over the past week.
Saumil Gandhi, Senior Commodities Analyst at HDFC Securities, cited policy-related uncertainty in the US as a key factor driving gold’s northward journey.

Market Outlook:

Commodities experts suggest traders will closely monitor upcoming US economic indicators such as GDP figures, jobs data, and pending home sales for further clarity on the Federal Reserve’s rate decisions.