Bullion futures scale fresh peaks

New Delhi: Gold futures soared by Rs 7,774 to scale an all-time high of Rs 1,58,339 per 10 grams on Wednesday, as global prices breached the $4,800 per ounce-level amid sustained demand for the safe-haven assets.

Rallying for the third straight day, the yellow metal futures for February delivery climbed by Rs 7,774, or 5.16 per cent, to touch a record of Rs 1,58,339 per 10 grams on the Multi Commodity Exchange (MCX). On Tuesday, the yellow metal extended its record-breaking run, breaching the Rs 1.5 lakh per 10-gram mark in futures trade. Over the last three sessions, gold prices climbed by Rs 15,822, or 11.10 per cent, from Rs 1,42,517 per 10 grams on January 16.

Silver, too, extended its upward march for the third consecutive day and hit yet another record on the MCX. The white metal futures for the March contract soared by Rs 11,849, or 3.66 per cent, to Rs 3,35,521 per kilogram.

“Gold and silver prices extended their rally to fresh record highs, driven by heightened global uncertainty amid escalating trade war tensions,” Rahul Kalantri, Vice-President of Commodities, Mehta Equities Ltd, said.

According to market experts, safe-haven demand has strengthened as investors are shifting away from riskier assets. In the international market, gold futures on the Comex breached the $4,800-per-ounce level for the first time.

The yellow metal for February delivery appreciated by $113.4, or 2.4 per cent, to $4,880.9 per ounce. Comex silver futures for the March contract were trading 0.17 per cent higher at $94.79 per ounce, after hitting a record of $95.53 per ounce in the previous session.

Kalantri said the sharp rise in bullion prices was driven by sell-offs in global equity markets and renewed geopolitical concerns, including US ambitions toward Greenland, prompting investors to shift toward safe-haven assets.