Chennai: As global uncertainties continued unabated, gold crossed the Rs 1.5 lakh per 10 gram mark, while silver prices gained around Rs 20,000 per kg in a single session on Monday. In two days, the price of silver rose by Rs 30,000 per day.
In the New Delhi spot market, the price of 24-carat gold was Rs 1,52,500 per 10 grams, up from Rs 1,48,100 in the previous session. Gold has gained more than Rs 4,000 per 10 grams in the first two days of the week. Silver hit a new high of Rs 3.23 lakh per kg on Tuesday against Rs 3,02,600 per kg on Monday.
On the Multi-Commodity Exchange (MCX), the price of gold was around the same levels, if not higher. Gold was trading around Rs 1,52,500 and silver at Rs 3,27,998. Bullion market prices are generally traded above MCX prices as they also include GST rates. “However, with prices soaring in the last few sessions, the market expects sharp corrections in the short term and this has affected demand,” said Surender Jain of the Delhi Bullion Association.
“Precious metals remained near record levels as renewed tensions between the United States and European nations, sparked by US tariff threats linked to control of Greenland, fueled risk-averse sentiment. Denmark’s increased military presence in Greenland added to the backdrop of instability,” Kedia Commodities concludes.
Geoeconomic tensions rose when US President Donald Trump said he would move to impose tariffs on European nations if their demands are not met, although he refused to rule out the use of force. Trump also warned of a 200 percent tariff on French wines and champagne after President Macron rejected an invitation to join his peace initiative.
Financial markets are also closely monitoring the delayed U.S. personal consumption expenditures inflation report for clues about the path of the Federal Reserve’s interest rates.
In addition to gold and silver, platinum and palladium prices also experienced increased volatility after the US administration decided not to impose tariffs on critical minerals and opted instead to secure supply through international partners, adding to short-term price fluctuations.
