New Delhi, February 25 Precious metal prices increased by up to 2 per cent in the national capital on Wednesday, with silver rising to Rs 2.77 lakh per kilogram, and gold advancing to Rs 1.64 lakh per 10 grams, tracking strong global trends and sustained demand for safe-haven assets.
According to the All India Sarafa Association, the white metal jumped by Rs 5,900, or 2 per cent, to Rs 2,77,900 per kg (inclusive of all taxes) from Tuesday's closing level of Rs 2,72,000 per kg.
Continuing its gains for the fifth consecutive session, 99.9 per cent purity gold appreciated by Rs 1,000, or nearly 1 per cent, to Rs 1,64,200 per 10 grams (inclusive of all taxes). It had closed at Rs 1,63,200 per 10 grams in the previous trading session.
"Gold maintained moderate gains on Wednesday as persistent uncertainty over US trade policy and geopolitical tensions in the Middle East continued to drive demand for precious metals," said Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities.
He added that ongoing uncertainty related to tariffs, along with renewed threats from US President Donald Trump of higher duties, has kept financial markets on edge and reinforced investor demand for defensive assets such as gold.
In the international market, spot silver gained USD 3.13, or 3.59 per cent, to USD 90.30 per ounce, while gold was trading nearly 1 per cent higher at USD 5,181.46 per ounce.
"Spot gold has recovered most of the losses incurred on Tuesday, which was driven by positive risk sentiment and a stronger US dollar," said Praveen Singh, Head of Commodities and Currencies, Mirae Asset ShareKhan.
Meanwhile, the US and Iran are scheduled to hold the third round of talks in Geneva on Thursday.
Renisha Chainani, Head of Research at Augmont, said the ongoing diplomatic engagement between Washington and Tehran, and the uncertainty surrounding Iran's nuclear programme, continue to embed a geopolitical risk premium in global markets, supporting bullion prices further.
