Gold futures surged 1.7% and breached the psychological Rs 96,000 per 10 grams-mark on Monday on the back of rising demand in the global market. June contracts of the yellow metal continued to show its stellar performance as it touched a fresh peak of Rs 96,875 per 10 grams during the initial trade on the Multi Commodity Exchange. So far in 2025, the yellow metal as soared nearly 25%.
Meanwhile on the international commodity exchange, the yellow metal crossed the $3,400 per ounce-mark on Monday. At 2:21 pm, gold’s June futures contract traded 2.3% higher at $3,403.79 per ounce in the international market. Currently, spot price of gold was $3,393.26 per ounce.
On the other hand, May contract of Silver futures on the MCX recovered on Monday after ending 1.3% lower on Thursday. It was 0.6% up at Rs 95,646 per kilogram.
“This year gold and silver prices have experienced significant movements due to ongoing trade tensions, rate cuts expectations, geopolitical uncertainties and weakening dollar,” Satish Dondapati, a fund manager at Kotak Mahindra AMC, said in a note.
Gold will remain strong in the short term if trade tension escalates, Dondapati said, adding that its long-term outlook also remains bullish, supported by strong central bank purchases and geopolitical uncertainties. Even though silver prices have been volatile, its long-term trend remains upward, he added.
Demand for safe haven precious metals, especially gold, have been on a upward trajectory, more so in the backdrop of a raging trade war between the US and China which has sent shockwaves across the global economy.
“Gold touched a record high as the dollar sank to a three-year low and trade war concerns between the US and key trading partners stirred recession fears, making investors lean towards the safe-haven asset,” Manav Modi, a senior analyst of commodity research at Motilal Oswal said in a note.
The demand was tepid for physical gold in India last week as a blistering price rally curbed purchases, while premiums held firm in its top consumer, China, Manav Modi added.
