Gold Prices Surge Amid Geopolitical Tensions

Gold prices experienced a sharp increase on Wednesday, surpassing the significant Rs 1 lakh per 10-gram mark in the national capital. This surge was primarily driven by investors flocking to safe-haven assets as tensions between India and Pakistan escalated.

Details of the Price Hike

According to the All India Sarafa Association, gold of 99.9% purity rose to Rs 1,00,750 per 10 grams, up from the previous day’s close of Rs 99,750. Similarly, gold of 99.5% purity saw a demand surge, increasing by Rs 1,050 to Rs 1,00,350 per 10 grams.

Behind the Scenes: Geopolitical Strife

The domestic gold price spike followed reports of Indian armed forces conducting missile strikes on terrorist targets across Pakistan and Pakistan-occupied Kashmir. These actions were in retaliation for a recent terrorist attack in Pahalgam, further inflaming tensions between the two nations.

Silver Prices Follow Suit

Mirroring gold's upward trend, silver prices also climbed, settling at Rs 98,940 per kg, up from Rs 98,500 on Tuesday.

Global Market Trends

Contrasting with the domestic surge, international spot gold prices declined by 1.8%, attributed to easing geopolitical concerns amid scheduled US-China trade talks. Spot silver in the global market also saw a decrease, falling 1.24% to USD 32.81 per ounce.

Looking Ahead

Market participants are now keenly awaiting the US Federal Reserve’s FOMC policy decision, with expectations of unchanged interest rates despite political pressures for cuts to support economic growth.