Gold prices staged a spectacular rally on Monday, scaling fresh historic peaks in both domestic and international markets. Investors rushed to park their funds in the traditional safe-haven asset, driven by escalating geopolitical concerns and shifting expectations around US monetary policy.
Domestic and Global Markets Scale New Peaks
On the Multi Commodity Exchange (MCX), the most active gold futures contract for February delivery surged by Rs 2,431, or 1.8%, to achieve a landmark high of Rs 1,41,250 for every 10 grams. This impressive jump extends a strong weekly gain, with the yellow metal adding Rs 3,058, or 2.25%, over the past week, signaling robust and sustained buying interest.
The bullish sentiment was mirrored powerfully in overseas markets. On the Comex, gold for February delivery vaulted by $111.8, or 2.5%, to set a new record at $4,612.7 per ounce. Silver, often called gold's volatile cousin, joined the rally. The March silver contract leaped by $4.56, or 5.8%, to touch an all-time high of $83.90 per ounce.
City-Wise Gold Rates Reflect the Upward Momentum
The record-setting surge in futures translated directly into higher prices for physical gold across major Indian cities on Monday. Here is a snapshot of the prevailing rates:
Delhi: 22K gold was quoted at Rs 13,045 per gram (up Rs 155), while 24K gold stood at Rs 14,230 per gram (up Rs 169).
Ahmedabad: 22K gold was priced at Rs 13,035 per gram (up Rs 155), and 24K gold came in at Rs 14,220 per gram (up Rs 169).
Chennai: The city saw sharper increases, with 22K gold at Rs 13,120 per gram (up Rs 220) and 24K gold quoted at Rs 14,313 per gram (up Rs 348).
Mumbai, Hyderabad, Bhubaneswar, Kolkata, Bangalore: In these cities, 22K gold was listed at Rs 13,030 per gram (up Rs 155), while 24K gold was priced at Rs 14,215 per gram (up Rs 169).
Lucknow & Jaipur: 22K gold stood at Rs 13,045 per gram (up Rs 155), and 24K gold was at Rs 14,230 per gram (up Rs 169).
Patna: 22K gold was quoted at Rs 13,035 per gram (up Rs 155), while 24K gold stood at Rs 14,220 per gram (up Rs 169).
What's Driving the Unprecedented Rally?
The flight to safety is the dominant theme. Investors globally are seeking refuge in gold as a safe-haven asset amid rising geopolitical instability in several regions. This uncertainty prompts a move away from riskier investments.
Concurrently, market participants are keenly refocusing on the trajectory of interest rates from the US Federal Reserve. Expectations of a less aggressive monetary policy stance, or potential rate cuts in the future, tend to weaken the US dollar and make dollar-priced gold cheaper for holders of other currencies, boosting demand. The combination of these factors—geopolitical risk and monetary policy speculation—has created a perfect storm propelling gold futures to record highs.
Analysts suggest that the momentum could sustain in the near term as long as these macro-economic and geopolitical triggers remain active, keeping the spotlight firmly on bullion markets.
