New Delhi, 16 April

Gold prices soared by Rs 1,650 to hit an all-time high of Rs 98,100 per 10 grams in the national capital on Wednesday amid a global rush for safe-haven buying triggered by an escalated trade war between the US and China.

According to the All India Sarafa Association, the precious metal of 99.9 per cent purity had finished at Rs 96,450 per 10 grams on Tuesday.

Gold prices recorded its steepest single-day hike on 11 April when it jumped Rs 6,250 in the local markets.

So far this year, the yellow metal prices have added Rs 18,710 or 23.56 per cent since 1 January level of Rs 79,390 per 10 grams.

Gold of 99.5 per cent purity also appreciated by Rs 1,650 to hit a fresh peak of Rs 97,650 per 10 grams against the previous close of Rs 96,000 per 10 grams.

Additionally, silver prices climbed by Rs 1,900 to Rs 99,400 per kg. The white metal had closed at Rs 97,500 per kg on Tuesday.

On the Multi Commodity Exchange, gold futures for June delivery surged by Rs 1,984 or 2.12 per cent to touch a record high of Rs 95,435 per 10 grams.

'Gold showed a solid rally once again...as MCX gold hit landmark levels of Rs 95,000, while Comex gold surpassed USD 3,300, reflecting strong safe-haven demand,' Jateen Trivedi, VP Research Analyst of Commodity and Currency, LKP Securities, said.

The rally was driven by geopolitical uncertainty and the absence of any constructive progress in tariff negotiations between the US and China. Until there is a concrete update indicating de-escalation, gold is likely to remain elevated, Trivedi added.

On the global front, spot gold rose to touch a record high of USD 3,318 per ounce. Later, it pared some gains to trade at USD 3,299.99 per ounce.

'Gold surged to a record high, driven by growing trade war concerns after the US government tightened export rules to China,' Kaynat Chainwala, AVP-Commodity Research, Kotak Securities, said.

President Donald Trump has announced an investigation into whether tariffs are needed on critical minerals, further fuelling market anxiety. On Wednesday, the US administration further raised tariffs on most goods from China to 245 per cent.

According to Abans Financial Services' Chief Executive Officer Chintan Mehta, gold prices hit record highs as the US dollar index slipped below the 100-mark, nearing three-year lows.

He said the upswing in gold is fuelled by rising expectations of a potential interest rate cut, with markets closely watching US Federal Reserve Chair Jerome Powell's speech to come later in the day.

Experts said the Powell's commentary would provide more clues on the interest rate path, which will play a key role in influencing the US dollar price dynamics.

'As the Federal Reserve navigates the twin challenges of supporting economic growth while managing tariff-driven inflation, the current macro environment continues to offer strong support for gold.

'Adding to the bullish momentum, major banks remain positive on gold's outlook, citing continued inflows into gold-backed ETFs and sustained central bank buying,' Mehta said.

Spot silver in the Asian market hours rose nearly two per cent to USD 32.86 per ounce.

Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said the market participants are now looking for macroeconomic data, including US retail sales and industrial production for further insights on the US Federal Reserve's interest rate cycle.