Gold jumps Rs 1,100 to all-time high of Rs 84,900 per 10g

Gold prices hit a fresh record high of Rs 84,900 per 10 grams in the national capital on Friday, driven by robust domestic demand and strong global cues, according to the All India Sarafa Association.

The precious metal of 99.9 per cent purity continued its ascent for the third straight session, jumping by Rs 1,100 to hit a new peak of Rs 84,900 per 10 grams.

The yellow metal has rallied by Rs 5,510 or 7 per cent since January 1 when the metal traded at Rs 79,390 per 10 grams in the local market.

Gold of 99.5 per cent purity surged by Rs 1,100 to hit a lifetime high of Rs 84,500 per 10 grams from the previous market close of Rs 83,400 per 10 grams.

Silver advanced by Rs 850 to Rs 95,000 per kg on Friday. The white metal had ended at Rs 94,150 per kg on Thursday.

"The bullish momentum in precious metals continues, with spot gold reaching a new all-time high and surpassing the $2,800 threshold in the intraday trade on Friday, while the spot gold price in the Delhi market crossed the Rs 84,000-mark," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

In futures trade, gold contracts for February delivery appreciated by Rs 487 or 0.6 per cent to hit another record high of Rs 82,210 per 10 grams on the Multi Commodity Exchange (MCX).

The April contracts for the precious metal increased by Rs 371 or 0.45 per cent to hit another fresh peak of Rs 82,415 per 10 grams.

"Gold traded positively while Comex remained flat as budget-driven premiums were observed in MCX gold, anticipating potential duty changes.

"If no changes occur, the premium may reduce on Budget day.," Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said.

Also, silver contracts for March delivery advanced Rs 403 or 0.43 per cent to Rs 93,849 per kg.

During the day, the white metal climbed by Rs 629 or 0.67 per cent to hit an intraday high of Rs 94,075 per kg on Friday.

Comex gold futures for April delivery traded flat at $2,842.40 per ounce in the international markets.

In the intraday session, the bright metal hit a fresh all-time high of $2,859.45 per ounce.

According to Kotak Securities, "Gold futures surged to a record high of $2,859.50 per ounce, surpassing the previous peak from October supported by investor demand for safe-haven assets following renewed tariff threats by the US leader against Mexico and Canada, and potential tariffs against China."

Further, monetary policies from major central banks, including the European Central Bank's expected rate cuts have bolstered the gold's upward momentum, the stock broking firm added.

Comex silver futures for March contracts quoted 0.31 per cent higher at $32.60 per ounce in the Asian market hours.

"Market participants will be awaiting the US Personal Consumption Expenditures (PCE) inflation data later on Friday, which will be crucial to the metal as this is the US Fed's preferred gauge of inflation," Praveen Singh, Associate VP, Fundamental Currencies and Commodities at Mirae Asset Sharekhan, said.

Investors also awaiting the Union Budget for 2025-26 to be presented by Finance Minister Nirmala Sitharaman on Saturday, Singh added.