Gold surges ₹800 to record ₹1,03,420/10g on tariffs, safe-haven demand

Gold prices climbed by ₹800 to hit a fresh all-time high of ₹1,03,420 per 10 grams in the national capital on Friday due to persistent buying by stockists, according to the All India Sarafa Association.

The precious metal of 99.9 per cent purity added ₹3,600 in the preceding session to hit a new closing peak of ₹1,02,620 per 10 grams.

In the national capital, gold of 99.5 per cent purity also jumped by ₹800 to hit a fresh peak of ₹1,03,000 per 10 grams (inclusive of all taxes) on Friday, surpassing its earlier lifetime high of ₹1,02,200 per 10 grams recorded after Thursday's session.

In the last five sessions, the yellow metal prices have risen by ₹5,800 per 10 grams.

"Gold prices rise after US imposed a 39 per cent tariff on 1 kg and 100-ounce of gold bars imported from Switzerland, disrupting a key supply route and injecting fresh volatility into the bullion market.

"The reclassification of these bars under a taxable category ended their long-standing exemption, as Switzerland is a major refining hub and the move has created supply-side uncertainty and revived safe-haven interest in gold amid broader geopolitical tensions," Abans Financial Services' CEO Chintan Mehta said.

Silver prices also rallied ₹1,000 to ₹1,15,000 per kilogram (inclusive of all taxes) on Friday. It had settled at ₹1,14,000 per kg on Thursday, as per the association.

The white metal has added ₹5,500 per kilogram in the last five sessions.

According to Saumil Gandhi, Senior Analyst, Commodities, HDFC Securities, gold's rally is fuelled by worries about the global economic outlook, particularly following the implementation of President Donald Trump's new tariffs on Thursday.

Additionally, weak US macroeconomic data has increased expectations that the Federal Reserve will lower interest rates as early as September, Gandhi said.

On the MCX, the most traded gold futures for October contracts appreciated ₹782 or 0.77 per cent to hit a fresh peak of ₹1,02,250 per 10 grams.

Subsequently, the December contracts rallied₹ 849 or 0.83 per cent to hit a lifetime high of ₹1,03,195 per 10 grams on the bourse.

"Going ahead, gold prices are expected to remain choppy as Trump's tariff stance continues to create uncertainty, especially with the India deal appearing off the table for now. Any positive movement in the rupee could limit gold's upside," Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said.

Silver futures for September contracts rose ₹554 or 0.48 per cent to ₹1,14,840 per kilogram on the Multi Commodity Exchange (MCX).

Spot gold is trading flat at $3,388.56 per ounce. During the day, the precious metal increased by $104.02 or 3.06 per cent to hit a record high of $3,500.33 per ounce in New York.

"Gold reached a fresh high above $3,500, with the Bank of England lowering interest rates for the sixth time this year and jobless claims increasing more than anticipated this week," Renisha Chainani, Head Research at Augmont, said.

Meanwhile, spot silver went up marginally to $ 38.28 per ounce in the international markets.