Gold touches lifetime high of Rs 1.05 lakh/10g on tariff jitters

New Delhi: Rising for the sixth consecutive session, gold prices rallied Rs 1,000 to hit yet another record high of Rs 1,05,670 per 10 grams in the national capital on Monday, lifted by expectations of a rate cut by the US Federal Reserve this month and robust demand in overseas markets.

According to the All India Sarafa Association, the precious metal of 99.9 per cent purity had climbed Rs 1,000 to hit a record high of Rs 1,04,670 per 10 grams on Saturday.

In the local market, gold of 99.5 per cent purity jumped Rs 800 to hit a lifetime high of Rs 1,04,800 per 10 grams (inclusive of all taxes) on Monday. It had settled at Rs 1,04,000 per 10 grams in the previous market session.

Traders said the precious metal surged as investors surged towards safe-haven assets amid growing concerns over the independence of the US Fed and heightened uncertainty around tariff policies.

Additionally, silver prices rallied Rs 1,000 to hit a fresh peak of Rs 1,26,000 per kilogram (inclusive of all taxes) on Monday. The white metal had skyrocketed Rs 6,000 to hit a record high of Rs 1,25,000 per kg on Saturday.

"Silver hit record high in the domestic markets largely driven by industrial demand in clean energy and electronics supporting with speculative interest driving the price sharply higher.

"The recent announcement of the US Geological Survey proposing silver as a critical mineral has created a new wave of momentum as well," Trivesh D, Chief Operating Officer at brokerage firm Tradejini, said.

On the MCX, the most-traded gold futures for October contract on Monday increased Rs 2,113 or 2.03 per cent to hit a lifetime high of Rs 1,05,937 per 10 grams in morning trade.

Subsequently, the yellow metal futures for the December contract jumped Rs 1,682 to hit a record high of Rs 1,06,539 per 10 grams.

"For gold, deteriorating value of the rupee internationally and rising geopolitical tensions have made gold more attractive as a safe haven. Gold crossed Rs 1.05 lakh per 10 grams and silver zoomed near Rs 1.25 lakh per kg on the MCX, which has caused Indian buyers to see some of the highest prices in over 10 years now," said Trivesh D.

In addition, silver futures for December contract zoomed Rs 3,117, or 2.5 per cent, to hit a record peak of Rs 1,24,990 per kg on the Multi Commodity Exchange (MCX) on Monday.

In the international markets, Comex gold futures for December contract rose to hit a record high of $3,556.87 per ounce. Spot gold rose $22.51, or 0.65 per cent, to trade at $3,470.51 per ounce in New York.

"Spot gold extended its rally, buoyed by increasing expectations of a September rate cut, growing uncertainty around President Donald Trump's proposed tariffs, and the escalating standoff between the Fed and the Trump administration," Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said.

San Francisco Fed President Mary Daly signalled that policymakers may be ready to lower interest rates soon, noting that inflation driven by tariffs is likely to be temporary.

"Political and trade uncertainty lingers as a US court ruled that President Trump's sweeping trade tariffs were illegal, while a decision on whether Lisa Cook can continue her Fed duties is not expected before at least Tuesday," Chainwala said.

Comex silver futures breached the $41 per ounce, its highest level in 14 years, in New York. Also, spot silver went up 1.96 per cent to trade at $40.47 per ounce.

"Investors will closely track developments including a series of key US labour market releases this week, including job openings, ADP employment, and non-farm payrolls, which could influence the Fed's monetary policy trajectory," Chintan Mehta, CEO, Abans Financial Services, said.