Gold rebounds Rs 800 in Delhi markets as global tensions boost safe-haven demand

Gold prices rebounded sharply by Rs 800 to Rs 1,14,000 per 10 grams in the national capital on Friday tracking firm global cues amid escalating geopolitical tensions and renewed trade frictions between the US and China.

According to the All India Sarafa Association, the yellow metal of 99.9 per cent purity had closed at Rs 1,13,200 per 10 grams on Thursday.

In the local bullion market, gold of 99.5 per cent purity also increased by Rs 700 to Rs 1,13,500 per 10 grams (inclusive of all taxes). The precious metal had settled at Rs 1,12,800 per 10 grams in the previous trade.

“Gold traded positive in the last trading session of the week, with the overall sentiment for precious metals remaining bullish. This optimism is driven by several bullish factors, including strong inflows into exchange-traded funds this year, and central banks actively purchasing gold.

“Meanwhile, expectations for additional interest rate cuts by the US Federal Reserve (Fed) before the end of 2025, and a persistent demand for safe investments due to ongoing geopolitical tensions and trade-related issues,” Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said.

Additionally, silver prices extended gains for the second straight day by climbing Rs 500 to Rs 1,32,000 per kilogram (inclusive of all taxes) on Friday. The white metal had ended at Rs 1,31,500 per kg on Thursday, as per the association.

Traders said geopolitical uncertainties lifted safe-haven demand for the yellow metal, while renewed debates on the US Federal Reserve’s independence. However, a firm dollar acted as a headwind for the yellow metal and capped its gains.

On the global front, spot gold rose 0.18 per cent at USD 3,651.18 per ounce while spot silver went up nearly 1 per cent to USD 42.16 per ounce.

“Gold prices continue to hold firm, with focus now shifting to next week’s key US macroeconomic data, including GDP, manufacturing & services PMI, and PCE Price Index — which will guide further trend,” Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said.

Renisha Chainani, Head — Research at Augmont, said, “Gold and silver prices came under pressure after the US Federal Reserve cut interest rates this week but signalled caution on the pace of future easing amid concerns over persistent inflation.

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The Fed on Wednesday resumed rate cuts and left the door open for additional policy easing, but its tempered guidance cast doubts on how quickly further reductions would follow.

“The rate cut was in response to a weakening labour market in the US,” Chainani added.