Precious metals rally: Gold surges to record high, hovering above ₹89,000; Silver nears ₹97,000 per kg on MCX

Gold prices jumped by around ₹1000 reclaiming the all-time high of ₹89,520 per 10 grams in Ahmedabad on Wednesday, as per sources. Gold 99.9% (24K) purity closed at ₹86,113 per 10 grams in the previous trading session on MCX on 19 February. In the international market, prices hovered around $2,939.39 per troy ounce, likely to breach $3000 per ounce soon, say analysts.

Meanwhile, silver closed at ₹96,848 per kg and hit an intraday low of ₹96,422 on the MCX. The price hovered around $32.84 per troy ounce in the international market.

Comex gold futures climbed for a third straight day, surpassing $2,940 per ounce, fuelled by ongoing concerns about a potential global trade war. Rising trade tensions increased gold's appeal as a safe investment. However, gold's gains were limited by comments from Federal Reserve officials, who signalled caution about cutting interest rates due to ongoing inflation concerns. Fed Governors Bowman and Waller stressed the need for careful decision-making. Meanwhile, geopolitical issues like the Russia-Ukraine conflict continue to impact market sentiment.

Gold, a valuable and rare metal, is typically found in alloyed forms rather than in its pure state. Its unique physical properties make it highly resistant to air, moisture, heat, and most chemicals. Additionally, gold has an exceptionally high density. Known for its stability, gold is widely regarded as a reliable investment, particularly during economic uncertainty. Its scarcity, intrinsic worth, and ability to retain value over time make it a strong safeguard against inflation.