Gold jumps Rs 850 to hit fresh all-time high of Rs 70k per 10 grams

NEW DELHI: Gold prices surged by Rs 850 to reach a new peak of Rs 70,050 per 10 grams on Thursday on strong global cues, according to HDFC Securities.

This is the second straight session that precious metal prices have hit all-time high levels. In the previous trade, the precious metal had settled at Rs 69,200 per 10 grams.

Silver prices also zoomed Rs 1,000 to hit record Rs 81,700 per kg. In the previous session, it had finished at Rs 80,700 per kg.

"Spot gold prices (24 carats) in the Delhi markets are trading at Rs 70,050 per 10 grams, up by Rs 850, amid a bullish trend in the overseas markets," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

In the international markets, spot gold at COMEX was trading at USD 2,297 per ounce, up by USD 22 from the previous close.

Gold touched yet another record after Federal Reserve Chair Jerome Powell confirmed that an interest rate cut would likely be appropriate "at some point this year". Traders focus on rate cuts rather than the timing of the first rate cut, Gandhi said.

Silver was also trading higher at USD 27.05 per ounce. It had closed at USD 26.25 per ounce in the previous session.

"Gold continues to hover around its all-time high levels on the back of weakness in the dollar amid uncertainty over US interest rate cuts, while increased safe-haven demand also aided prices.

"Additionally, silver prices too marked an all-time high on the domestic front, amidst a sharp rally in industrial metals," Navneet Damani, Senior VP of Commodity Research at Motilal Oswal Financial Services, said.

Persistent geopolitical tensions in the Middle East and between Russia and Ukraine, coupled with a devastating earthquake in Taiwan, spurred safe haven plays into bullion and other precious metals, Damani added.

According to Praveen Singh – Associate VP, Fundamental Currencies and Commodities at Sharekhan by BNP Paribas, "Major US economic data, including weekly jobless claims to be released on Thursday, will provide more insights on the US Federal Reserve's monetary policy outlook".

Investors will also look forward to services and composite PMIs out of the UK and the Eurozone, Singh added.