New Delhi: Gold prices in Delhi rose sharply by Rs 1,000 on Wednesday, reaching Rs 1,00,750 per 10 grams of 99.9 per cent purity. This jump came after closing at Rs 99,750 on Tuesday, according to the All India Sarafa Association. Gold of 99.5 per cent purity also climbed Rs 1,050 to Rs 1,00,350 per 10 grams.
This rise in prices is due to a strong demand for gold as a "safe-haven" asset — something people invest in during uncertain or dangerous times.
India-Pakistan Tensions Trigger Buying
The sudden price jump was mainly driven by increased tensions between India and Pakistan. On Wednesday morning, Indian forces launched missile strikes on nine terror targets in Pakistan and Pakistan-occupied Kashmir. These included locations linked to Jaish-e-Mohammad in Bahawalpur and Lashkar-e-Taiba in Muridke.
This military action was in response to the recent terror attack in Pahalgam. As fears of conflict grow, more people are buying gold for security.
Silver Also Gains in Domestic Market
Silver prices also moved up on Wednesday. It rose by Rs 440 to reach Rs 98,940 per kg in Delhi. On Tuesday, it had closed at Rs 98,500 per kg.
Global Gold Prices Fall Despite Local Surge
Interestingly, while gold rose in India, global prices dropped. In the international market, spot gold went down by USD 62.12 or 1.8 per cent, trading at USD 3,369.65 per ounce. Experts say this drop was due to easing fears after news of possible progress in trade talks between the US and China.
Spot silver also fell globally by 1.24 per cent to USD 32.81 per ounce.
What’s Next for Gold Prices?
Market experts say attention will now shift to the US Federal Reserve’s upcoming interest rate decision. Most expect the Fed to keep rates steady, but investors will be watching closely for any hints about future policy from Fed Chair Jerome Powell.
Despite short-term changes, many experts believe gold will remain a strong investment option in uncertain times.
