As per the All India Sarafa Association, the price of 24-carat gold (99.9 per cent purity) had closed at Rs 1,23,300 per 10 grams on Monday. In the local bullion market, gold of 99.5 per cent purity also surged by Rs 700 to touch a lifetime peak of Rs 1,23,400 per 10 grams – up from Rs 1,22,700 in the previous session
Globally, spot gold was trading slightly lower at USD 3,958.18 per ounce after earlier hitting an all-time high of USD 3,977.45 per ounce during the day. Representational pic
Gold prices jumped by Rs 700 to hit a new all-time high of Rs 1.24 lakh per 10 grams in the national capital on Tuesday, amid rising safe-haven demand fuelled by concerns over the ongoing US government shutdown and increasing expectations of further rate cuts by the US Federal Reserve, news agency PTI reported.
As per the All India Sarafa Association, the price of 24-carat gold (99.9 per cent purity) had closed at Rs 1,23,300 per 10 grams on Monday.
In the local bullion market, gold of 99.5 per cent purity also surged by Rs 700 to touch a lifetime peak of Rs 1,23,400 per 10 grams (inclusive of all taxes) – up from Rs 1,22,700 in the previous session, PTI reported.
However, silver prices witnessed a sharp correction. After touching an all-time high on Monday, the price of silver declined by Rs 3,400 to reach Rs 1.54 lakh per kg (inclusive of taxes). In the previous session, one kg of silver cost Rs 1,57,400.
Globally, spot gold was trading slightly lower at USD 3,958.18 per ounce after earlier hitting an all-time high of USD 3,977.45 per ounce during the day, PTI reported.
“Gold prices rose on Tuesday, with spot gold approaching the important milestone of USD 4,000 per ounce. Expectations of a dovish monetary policy from the Federal Reserve, along with ongoing demand for safe-haven assets, drove the gold price to hit a series of record highs, even as it was technically in overbought territory,” said Saumil Gandhi, Senior Analyst (Commodities) at HDFC Securities.
Meanwhile, the US government shutdown has entered its seventh day, with no resolution in sight.
“This shutdown has created uncertainty in financial markets and is providing a boost to precious metals. Additionally, the ongoing political tensions in France and Japan, along with persistent geopolitical risks, are increasing demand for safe-haven assets,” Gandhi added.
Spot silver was quoting 0.12 per cent lower at USD 48.46 per ounce.
According to analysts, the US government shutdown has delayed the release of crucial economic data, including the September jobs report, adding further uncertainty to the markets.
"The absence of official US macroeconomic indicators, coupled with rising expectations of two Federal Reserve rate cuts this year, has further strengthened demand for bullion prices," an expert, who did not wish to be named, said.
In addition, consistent gold buying by central banks across the globe continues to support the rally in precious metal prices.
As per the latest data from the World Gold Council (WGC), central bank gold buying picked up in August, with global reserves increasing by 15 tonnes during the month.
Data from the People’s Bank of China (PBOC) showed that the country’s gold reserves rose to 74.06 million fine troy ounces at the end of September, from 74.02 million ounces in August. This was the 11th consecutive month of gold purchases by the Chinese central bank.
(With PTI inputs)
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