Gold hits record high of Rs 1,03,420 as US tariffs roil markets

Gold's surge comes after the US slapped a 39 per cent tariff on swiss gold bars, disrupting a key global supply chain.

New Delhi: Gold prices climbed by Rs 800 to hit a fresh all-time high of Rs 1,03,420 per 10 grams in the national capital on Friday due to persistent buying by stockists, according to the All India Sarafa Association.

The precious metal of 99.9 per cent purity added Rs 3,600 in the preceding session to hit a new closing peak of Rs 1,02,620 per 10 grams.

In the national capital, gold of 99.5 per cent purity also jumped by Rs 800 to hit a fresh peak of Rs 1,03,000 per 10 grams (inclusive of all taxes) on Friday, surpassing its earlier lifetime high of Rs 1,02,200 per 10 grams recorded after Thursday's session.

In the last five sessions, the yellow metal prices have risen by Rs 5,800 per 10 grams.

"Gold prices rise after US imposed a 39 per cent tariff on 1 kg and 100-ounce of gold bars imported from Switzerland, disrupting a key supply route and injecting fresh volatility into the bullion market.

"The reclassification of these bars under a taxable category ended their long-standing exemption, as Switzerland is a major refining hub and the move has created supply-side uncertainty and revived safe-haven interest in gold amid broader geopolitical tensions," Abans Financial Services' CEO Chintan Mehta said.

Silver prices also rallied Rs 1,000 to Rs 1,15,000 per kilogram (inclusive of all taxes) on Friday. It had settled at Rs 1,14,000 per kg on Thursday, as per the association.

The white metal has added Rs 5,500 per kilogram in the last five sessions.

According to Saumil Gandhi, Senior Analyst, Commodities, HDFC Securities, gold's rally is fuelled by worries about the global economic outlook, particularly following the implementation of President Donald Trump's new tariffs on Thursday.

Additionally, weak US macroeconomic data has increased expectations that the Federal Reserve will lower interest rates as early as September, Gandhi said.

On the MCX, the most traded gold futures for October contracts appreciated Rs 782 or 0.77 per cent to hit a fresh peak of Rs 1,02,250 per 10 grams.

Subsequently, the December contracts rallied Rs 849 or 0.83 per cent to hit a lifetime high of Rs 1,03,195 per 10 grams on the bourse.

"Going ahead, gold prices are expected to remain choppy as Trump's tariff stance continues to create uncertainty, especially with the India deal appearing off the table for now. Any positive movement in the rupee could limit gold's upside," Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said.

Silver futures for September contracts rose Rs 554 or 0.48 per cent to Rs 1,14,840 per kilogram on the Multi Commodity Exchange (MCX).

Spot gold is trading flat at USD 3,388.56 per ounce. During the day, the precious metal increased by USD 104.02 or 3.06 per cent to hit a record high of USD 3,500.33 per ounce in New York.

"Gold reached a fresh high above USD 3,500, with the Bank of England lowering interest rates for the sixth time this year and jobless claims increasing more than anticipated this week," Renisha Chainani, Head Research at Augmont, said.

Meanwhile, spot silver went up marginally to USD 38.28 per ounce in the international markets.