Gold Prices Surge in Delhi, Reaching All-Time High of Rs 1.66 Lakh per 10 Grams

Gold Price Surges to Record High in National Capital Amid Geopolitical Tensions

The gold price in the national capital rose by Rs 650 to Rs 1,66,000 per 10 grams on Thursday, following the rupee's fall to a record low against the US dollar. According to the All India Sarafa Association, the gold of 99.9 per cent purity rose from Wednesday's closing of Rs 1,65,350 per 10 grams (inclusive of all taxes).

This marks the third consecutive day of a fall for the precious metal. The increase in gold price was supported by positive cues from the international market and continued weakness in the Indian rupee. However, the upside remained limited due to higher prices weighing on physical demand and keeping overall buying interest subdued.

The rupee weakened further and fell to a record low of 95.73 (provisional) against the US dollar, amid a strong dollar and worries over inflation amid elevated energy prices. This development led to a sharp jump in domestic prices, triggering investor selling and delaying fresh purchases.

Read also: Gold and Silver Prices Decline Amid Strengthening Dollar and Inflation Concerns

As a result, gold discounts in India widened sharply, with spot market discounts expanding to a record level of more than USD 200 per ounce. Meanwhile, silver prices snapped their three-day winning streak by declining Rs 900 to Rs 2,96,600 per kilogram (inclusive of all taxes).

International Market Update

In the international market, spot gold edged up to USD 4,704.30 per ounce, while silver slipped 0.57 per cent to USD 87.04 per ounce.

Read also: Gold and Silver Prices in India: A Review of Current Rates Across Major Cities