Gold prices soared by Rs 1,950, reaching a fresh high of Rs 1,27,950 per 10 grams on Monday in the national capital, fueled by increased safe-haven demand
amid escalating US-China trade tensions. The All India Sarafa Association reported that 99.9 per cent pure gold had closed at Rs 1,26,000 per 10 grams on the previous Friday. Similarly, gold with 99.5 per cent purity jumped by Rs 1,950 to an all-time peak of Rs 1,27,350 per 10 grams, up from Rs 1,25,400 recorded in the last session. Jateen Trivedi, VP Research Analyst at LKP Securities, explained, "Gold prices rose sharply higher as renewed US-China trade tensions reignited safe-haven demand." The US administration's decision to double tariffs on selected Chinese products, coupled with China’s threat to limit rare earth exports, has significantly raised global risk and uncertainty, according to a PTI report. Silver Follows Suit, Reaching Record Levels Silver prices also experienced a robust rally, climbing Rs 7,500 to reach a new record of Rs 1,79,000 per kilogram inclusive of taxes, compared to Rs 1,71,500 on Friday. Internationally, spot gold surged nearly 2 per cent, hitting an unprecedented $4,084.99 per ounce, while silver rose almost 3 per cent to a record $51.74 per ounce. Dilip Parmar, Research Analyst at HDFC Securities, noted, “Bullion prices have reached fresh and unprecedented levels, primarily driven by vigorous festive demand and structural supply & liquidity constraints.” He added that geopolitical tensions and sustained investment interest have pushed gold higher, with global central banks accumulating bullion. Geopolitical Concerns and Monetary Policies Driving Demand Jigar Trivedi, Senior Research Analyst at Reliance Securities, highlighted, "Silver jumped more than 2 per cent to above $51 per ounce on Monday, marking a new all-time high as renewed US-China trade concerns, political instability, and expectations of further US rate cuts fuelled demand for safe-haven assets." US President Donald Trump's announcement of a 100 per cent tariff increase on Chinese goods starting November 1, in retaliation to Beijing's rare earth export controls, initially heightened tensions. However, Trump later expressed willingness to negotiate ahead of a possible meeting with President Xi Jinping, indicating a potential easing of trade friction. Additionally, expectations of Federal Reserve rate cuts later this year, combined with tightening physical silver supplies in London, continue to support the metals' upward trajectory.
