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Chandigarh: Extending their record-breaking rally, gold prices surged close to ₹1.60 lakh per 10 grams in Chandigarh and other bullion markets across the country on Wednesday, while silver scaled a fresh all-time high of ₹3.34 lakh per kilogram, driven by a global flight to safe-haven assets amid heightened geopolitical and macroeconomic uncertainty.
According to the All India Sarafa Association, gold of 99.9 per cent purity jumped sharply by ₹6,500, or 4.24 per cent, to ₹1,59,700 per 10 grams (inclusive of all taxes). The surge followed Tuesday’s historic milestone when gold breached the ₹1.5 lakh-per-10-gram level for the first time in the domestic market. Silver prices continued their blistering ascent for the ninth consecutive session, soaring by ₹11,300 to a record ₹3,34,300 per kilogram (inclusive of all taxes). In the previous session, the white metal had already closed ₹20,400 higher at ₹3,23,000 per kg.
Market experts attributed the rally to sustained safe-haven demand, strong inflows into bullion-backed exchange-traded funds (ETFs), tight domestic supply and a weakening rupee.
Both gold and silver are trading at a notable premium in the Indian market compared to international prices due to robust investment demand and constrained availability, analysts said.
In global markets, gold crossed a key psychological threshold. According to FOREX.com, spot gold breached the USD 4,800 per ounce mark for the first time, rising USD 124.97, or 2.62 per cent, to USD 4,888.46 per ounce.
Spot gold climbed more than 2 per cent overseas as escalating tensions between the United States and the European Union over Greenland, coupled with rising global bond yields on fiscal and inflation concerns, provided strong upside momentum, said Bhagwan Bansal, Research Analyst at Up-stock.
Silver also remained firm in overseas trade, gaining 0.33 per cent to USD 94.91 per ounce on Wednesday, after touching a record high of USD 95.89 per ounce in the previous session. Analysts said persistent geopolitical rifts, trade tensions and concerns over slowing global growth have reinforced bullion’s appeal as a hedge against volatility.
“Investors are closely watching Europe’s response to tariff threats against several countries, as well as developments from Davos, where former US President Donald Trump is expected to discuss these issues with global leaders,” said analyst. “Against this backdrop of heightened geopolitical risk and macroeconomic uncertainty, gold demand has strengthened sharply. Prices could extend the rally toward USD 5,000 per ounce if risk-off sentiment persists,” Bansal said.
