Gold prices hit record high of ₹93,400 per 10g
What's the story
Gold prices hit all-time highs in the global and Indian markets on Friday as a wave of investors rushed to the precious metal as a safe haven amid global economic uncertainty.
In India, 24K gold now costs ₹93,390 for every 10gm. The price of 22K gold also rose to ₹85,610 per 10gm, while 18K gold now costs ₹70,050 per 10gm.
Global surge
Spot gold has hit new high at $3,219 per ounce
On the international stage, spot gold has hit a new high at $3,219.84 per ounce. This is the first time gold prices have crossed the $3,200 per ounce mark.
Spot gold refers to the current market price at which gold can be bought or sold for immediate delivery. It's called "spot" because the transaction settles "on the spot," typically within one or two business days.
US gold futures have gone even further, trading at $3,237.50 per ounce amid economic instability.
Market analysis
Factors driving gold's historic rally
Manav Modi, Senior Analyst at Motilal Oswal Financial Services Ltd, attributes this surge in gold prices to multiple factors beyond just inflation.
He said escalating trade tensions between the US and China have led investors toward gold as a long-term hedge.
Other contributing factors include a weaker dollar making gold cheaper for buyers using other currencies, central banks increasing their gold reserves, and recession fears due to weak inflation data and potential rate cuts from the Fed.
Forecast
Future predictions for gold prices
Experts predict gold prices could continue to rise. The next resistance level internationally is $3,300 per ounce or ₹95,000 per 10gm in India, according to Augmont Bullion.
Modi warned if the US and China fail to reach an agreement soon, markets could remain unsettled and gold might easily test ₹95,000/10g.
Capital.com's Kyle Rodda also noted $3,500/ounce is the next psychological mark with a clear upward trend.