New Delhi, March 3 – Gold prices surged by Rs 200 per 10 grams in the national capital on Monday, reaching Rs 87,900, driven by fresh buying from jewellers and retailers, along with the impact of a weakening rupee. According to the All India Sarafa Association, this marks an increase from the previous close of Rs 87,700 per 10 grams on Friday.
Gold of 99.5% purity also saw a gain of Rs 200, rising to Rs 87,500 per 10 grams, compared to its previous close of Rs 87,300.
Silver Prices Climb as Well
In a similar trend, silver prices saw an increase of Rs 100, now priced at Rs 96,500 per kg. On the Multi Commodity Exchange (MCX), gold contracts for April delivery rose by Rs 698, reaching Rs 84,917 per 10 grams.
Factors Behind the Price Movement
Jateen Trivedi, Vice President of Research at LKP Securities, attributed the rise in gold prices to ongoing global uncertainty. Despite a 1.60% profit-taking correction last week, the precious metal continued its upward momentum. Trivedi pointed out that tensions between US and Ukraine leaders over ongoing deal negotiations, coupled with persistent concerns over tariffs and dollar volatility, have fueled demand for gold as a safe-haven asset.
However, he warned that any positive developments in Russia-Ukraine relations or global trade tariffs could put downward pressure on gold prices.
Silver Futures Also Surge
In the futures market, silver for May delivery surged by Rs 1,193, or 1.26%, reaching Rs 95,521 per kg on MCX.
Global Market Trends
Gold also gained in the international markets. Gold futures for April delivery rose by USD 34.80, or 1.22%, settling at USD 2,883.30 per ounce. Spot gold also saw an increase of USD 16.52, reaching USD 2,874.35 per ounce.
Saumil Gandhi, Senior Analyst at HDFC Securities, noted that gold’s modest gains were supported by bargain buying and persistent safe-haven demand amid global market uncertainty.
Looking Ahead: Focus on US Data and Federal Reserve
Chintan Mehta, CEO of Abans Holdings, highlighted that markets are closely watching US manufacturing prices and PMI data, set to be released later today, for clues on inflation. Attention is also on the upcoming non-farm employment data this week. Additionally, speeches from Federal Open Market Committee (FOMC) members will be key in shaping market expectations about future monetary policy and its impact on bullion prices.
As global tensions and economic concerns continue, gold and silver remain strong contenders in the markets, with investors seeking safe-haven assets amid uncertain times.
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