Mumbai: Gold prices rose to fresh record levels in global markets on Wednesday as investors moved their money into safe assets amid growing geopolitical tensions and economic uncertainty. The rally was supported by a weaker US dollar and steady demand from central banks and large investors.
International spot gold was trading above 4,65,000 rupees per 10 grams, reflecting the sharp rise in dollar prices and the softer rupee. Silver also climbed to new highs, crossing about 3,40,000 rupees per kilogram in global trade when converted into Indian currency.
Market analysts said the rush towards gold was driven by worries over global conflicts, rising government debt and concerns about slower economic growth in major economies. Investors see gold as a store of value during uncertain times.
Central banks in several countries continued to add gold to their reserves, giving further support to prices. Demand from exchange traded funds also increased as more investors looked for protection against currency weakness and market volatility.
Traders said the dollar remained under pressure as expectations grew that US interest rates would stay stable for longer. This made gold cheaper for buyers using other currencies and added to the upward push in prices.
With gold and silver at historic highs, analysts warned that prices could remain volatile in the coming days. They said any change in global political developments or signals from major central banks could lead to sharp moves in the market.
For now, the global outlook for gold remains strong, with safe haven demand continuing to dominate trading and keeping prices at record levels in rupee terms.