Chennai: As global uncertainties continued unabated, gold surged past the Rs 1.5 lakh mark for 10 grams, while silver prices gained around Rs 20,000 per kg in a single session on Monday. In two days, the silver price zoomed by Rs 30,000 per day.
In the New Delhi spot market, 24-carat gold was priced at Rs 1,52,500 per 10 gm against Rs 1,48,100 in the previous session. Gold has gained over Rs 4,000 per 10 gm in the first two days of the week. Silver moved to a new high of Rs 3.23 lakh per kg on Tuesday against `3,02,600 per kg on Monday.
In the Multi-Commodity Exchange (MCX), gold was priced around the same levels, if not higher. Gold was trading around Rs 1,52,500 and silver Rs 3,27,998. Usually, the bullion market prices trade higher than MCX prices as they include the GST rates as well. “However, with prices shooting up in recent sessions, the market expects sharp corrections in the short term and this has affected the demand,” said Surender Jain of the Delhi Bullion Association.
“Precious metals remained near record highs as renewed tensions between the United States and European nations — sparked by US tariff threats linked to control of Greenland — fuelled risk-off sentiment. Denmark’s increased military presence in Greenland added to the backdrop of instability,” finds Kedia Commodities.
Geo-economic tensions heightened as US President Donald Trump said he would proceed with imposing tariffs on European nations if his demands are not met, while declining to rule out the use of force. Trump also warned of a 200 per cent tariff on French wines and champagne after President Macron declined an invitation to join his peace initiative.
Financial markets are also closely watching the delayed US personal consumption expenditures inflation report for clues on the Federal Reserve’s interest rate trajectory.
Apart from gold and silver, platinum and palladium prices also experienced heightened volatility after the US administration decided against imposing tariffs on critical minerals, opting instead to secure supplies through international partners, adding to short-term price fluctuations.