Gold Shines Bright: Record Prices Amid Market Turmoil

Gold prices surged to a historic peak of Rs 1,13,100 per 10 grams in India's capital, reflecting a 43.25% increase from the end of 2024. Factors like inflation concerns and central bank buying have fueled the rise. Meanwhile, the global market saw a slight dip as investors anticipate the Fed's policy moves.

Gold prices soared to unprecedented levels, reaching Rs 1,13,100 per 10 grams in the national capital, marking a Rs 100 increase due to robust stockist buying, reports the All India Sarafa Association. This year has seen the precious metal spike by 43.25%, a phenomenal rise from Rs 78,950 at the end of 2024.

The surge has been attributed to several factors, including inflation concerns, rising public debt, and sluggish U.S. growth. Exchange-traded fund flows in Asia and heavy buying by central banks have also pushed prices up. However, as gold becomes the go-to safe haven, experts warn of potential volatility due to allocation at these record highs.

In contrast, silver prices dropped by Rs 500 to Rs 1,28,000 per kilogram, and globally, gold prices decreased slightly as anticipation builds for the Federal Reserve's upcoming policy meeting. Investors eagerly await the U.S. consumer inflation report, which is expected to impact the Fed's decision on interest rate cuts, adding further uncertainty to the market.

(With inputs from agencies.)