Gold strikes fresh all-time high of Rs 83,750/10 gm

Gold prices rallied Rs 910 to hit a fresh all-time high of Rs 83,750 per 10 grams in the national capital on Wednesday due to heavy buying from jewellers and retailers, according to the All India Sarafa Association.

The precious metal of 99.9 per cent purity had settled at Rs 82,840 per 10 grams in the previous trading session.

The bright metal had jumped Rs 4,360 or 5.5 per cent to Rs 83,750 per 10 grams from Rs 79,390 per 10 grams on January 1.

Snapping a two-day losing run, gold of 99.5 per cent purity also surged Rs 910 to hit a fresh peak of Rs 83,350 per 10 grams on Wednesday.

The yellow metal finished at Rs 82,440 per 10 grams on Tuesday.

Silver climbed Rs 1,000 to Rs 93,000 per kg from Rs 92,000 per kg in the previous trading close.

In futures trade on the MCX, gold contracts for February delivery rose Rs 228 to hit a fresh lifetime high of Rs 80,517 per 10 grams.

Also, contracts for April delivery climbed Rs 199, or 0.2 per cent, to hit a fresh peak of Rs 81,098 per 10 grams for the first time on Wednesday.

"MCX gold surged to a record high amid a pullback in the dollar index and weak consumer data print from the US lifted the sentiment of precious metals.

"Investors sought safe-haven assets after the stock market rout, particularly in the US tech stock," Deveya Gaglani, Research Analyst of Commodities, Axis Securities, said.

Silver futures for March delivery advanced Rs 105, or 0.12 per cent, to Rs 91,156 per kg from the previous close of Rs 91,051 per kg on Tuesday.

Globally, Comex gold futures traded flat at $2,794.70 per ounce.

"Gold rose on Wednesday as traders sought safety in the precious metal against President Donald's expected tariff plan," Saumil Gandhi, senior analyst of commodities at HDFC Securities, said.

However, Comex silver futures in the Asian market hours quoted higher at $30.99 per ounce.

"Market participants awaiting the US Federal Reserve's (Fed) interest rate policy decision.

"While an immediate rate cut seems off the table, the forward guidance will be crucial in determining the next direction for gold," Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said.

According to Kotak Securities, "With the Fed's first policy meeting of the year wrapping up later on Wednesday, investors are laser-focused on any signals from Fed Chair Jerome Powell's speech that may offer clues on the outlook for the next gathering in March".