Gold Reaches Historic Highs

Escalation in US-China tariff war sent gold prices soaring past the $3,300/ounce mark for the first time in international spot markets on Wednesday, catapulting the yellow metal to a new high of $3,318. This surge has pushed it to within touching distance of the Rs 1 lakh/10 gm (24K) mark in the Indian market.

Domestic Markets React

The price surge sent the precious metal racing to all-time highs in the domestic markets. Gold shot past the Rs 98,000-mark in Delhi where it was quoting at Rs 98,100 by evening. On MCX too, gold reached an all-time high of Rs 95,435 for June futures.

Expert Insights

"Gold rose to a new record high, surpassing the previous all-time peak set on Monday. Traders were whip-lashed again by a slew of tariff headlines; in the latest, US President Donald Trump ordered a probe into critical minerals, sparking a move toward safe haven assets," said Saumil Gandhi of HDFC Securities.

Consumer Sentiment Dampened

The skyrocketing prices have, however, significantly dampened consumer appetite for the gold, which is selling at a discount to the import prices in local markets, pointed out Avinash Gupta, vice-chairman, All India Gem & Jewellery Domestic Council.

Silver Lags Behind

At a time when the ongoing US-China trade wars have set gold prices on fire, silver has failed to match pace. On Wednesday, international spot prices for the white metal were at $32.8/oz and crossed the Rs 1 lakh/kg mark in the Delhi spot markets.