Gold Prices Surge Past ₹85,000 Amid Rupee Weakness and Global Trends

Gold Hits a Record ₹85,300 Per 10 Grams

Gold prices in India have once again made headlines, surging by ₹400 to reach an all-time high of ₹85,300 per 10 grams in the national capital on Monday. This surge was fueled by strong demand from jewelers and stockists, coupled with a sharp depreciation of the Indian rupee and a firm global market trend, according to the All India Sarafa Association.

This latest rally follows a steady upward trend, with gold of 99.9% purity closing at ₹84,900 per 10 grams on Saturday. Meanwhile, gold of 99.5% purity saw a fourth consecutive day of gains, settling at ₹84,900 per 10 grams—continuing to break records.

Silver Joins the Rally, Rupee Weakens Further

It’s not just gold that’s climbing. Silver prices have also rallied for the fifth straight session, jumping ₹300 to reach ₹96,000 per kg. This marks a continued uptrend from its previous close at ₹95,700 per kg.

Adding to the pressure, the Indian rupee took a significant hit, plunging 55 paise to a record low of ₹87.17 against the US dollar on Monday. This decline was primarily triggered by renewed global trade tensions following the Trump administration’s imposition of tariffs on Canada, Mexico, and China.

Why Are Gold Prices Rising?

Gold is often considered a safe-haven asset, meaning its demand spikes during times of economic uncertainty. Here’s a breakdown of the key factors driving this surge:

Depreciating Rupee: A weaker rupee makes gold imports costlier, driving up domestic prices.
Global Market Strength: Gold prices have been rising internationally, leading to higher rates in India.
Stockist Demand: Jewellers and traders are ramping up their gold purchases, anticipating further price hikes.
Geopolitical Tensions: Global trade tensions and economic uncertainties are prompting investors to seek refuge in gold.

Gold in the Futures Market

The trend is also evident in the futures market. On the Multi Commodity Exchange (MCX), gold contracts for April delivery jumped by ₹461 (0.56%) to ₹82,765 per 10 grams. Market analysts suggest that investors are increasing their gold allocations amid fears of a potential Trade War 2.0, further supporting prices.

What This Means for Investors and Consumers

For gold investors, this surge reinforces the yellow metal’s position as a strong hedge against inflation and economic instability. If global uncertainties persist, we could see even higher levels in the coming months.

For jewellery buyers, however, this rally means higher costs. If you were planning to buy gold for weddings or investments, you might want to keep an eye on market trends before making a move.

Final Thoughts: Will Gold Continue Its Record-Breaking Run?

With global economic uncertainties, currency fluctuations, and strong investor demand, gold prices may remain volatile in the near term. The key question now is: Will gold breach the ₹90,000 mark soon? While no one can predict the exact movement, the current trends indicate that gold’s upward momentum isn’t slowing down just yet.

If you’re an investor, staying informed and diversifying your portfolio could be the smartest move. What do you think—will gold prices keep soaring, or is a correction on the horizon? Let’s discuss!

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