Gold prices in the national capital rose by Rs 200 to reach Rs 99,400 per 10 grams on Thursday, influenced by fresh buying from stockists and jewelers alongside a weaker dollar, as reported by the All India Sarafa Association. This followed a dip the previous day, where 99.9% purity gold fell from the significant Rs 1 lakh-mark by Rs 2,400, settling at Rs 99,200 per 10 grams. Similarly, gold with 99.5% purity saw a Rs 200 increase, reaching Rs 98,900 per 10 grams from its previous close.
On Wednesday, U.S. Treasury Secretary Scott Bessent indicated that the ongoing trade tension between the United States and China could persist. Additionally, reports emerged that President Donald Trump suggested the possibility of new tariffs for China within the next “two to three weeks,” while countries currently in negotiation may face reciprocal tariffs if discussions do not proceed as desired by the administration.
According to commodities market experts, comments from President Trump and Secretary Bessent have contributed to reviving demand for gold, viewed as a safe-haven, following a recent downturn from its all-time high. Meanwhile, silver prices increased by Rs 700, achieving Rs 99,900 per kg on Thursday, up from Rs 99,200 per kg in the last session. In futures trading, gold contracts for June delivery rose by Rs 1,046, or 1.1%, to Rs 95,768 per 10 grams on the Multi Commodity Exchange.
Analyst Jateen Trivedi from LKP Securities noted the sharp response in gold prices, which opened significantly higher on the MCX due to firm Comex gold prices above USD 3,300. This came following a notable rhetorical shift from the Trump administration, indicating tariffs could still play a key role ahead of further trade talks with China. The ongoing uncertainty and lack of definitive response from China continue to influence market sentiments.
Globally, spot gold increased by USD 47.16, or 1.43%, to reach USD 3,335.50 per ounce. The rise in prices followed a brief correction due to profit booking at record high levels, but the volatility in President Trump’s trade policy contributed to renewed demand for gold as a safe investment amid economic uncertainties.
Chintan Mehta, CEO of Abans Financial Services, highlighted that the fluctuating trade policy under President Trump has unsettled investors, enhancing the appeal of gold as a secure asset given the uncertain U.S. economic outlook. Kaynat Chainwala, AVP of Commodity Research at Kotak Securities, pointed out that upcoming U.S. macroeconomic data, such as jobless claims and durable goods orders, could further influence the direction of bullion prices.
In the Asian trading session, spot silver decreased by 0.48% to USD 33.42 per ounce.
