New Delhi

Gold prices hit a new all-time high in the national capital on Thursday, rising by Rs 70 to Rs 98,170 per 10 grams, driven by strong global demand, as reported by the All India Sarafa Association.

This followed a significant surge on Wednesday, when gold of 99.9% purity jumped by Rs 1,650, reaching Rs 98,100 per 10 grams.

Similarly, gold of 99.5% purity saw a rise of Rs 70, reaching a fresh record of Rs 97,720 per 10 grams, compared to the previous day's closing price of Rs 97,650 per 10 grams.

"Gold prices soared to record highs, fuelled by a weaker dollar, escalating trade war tensions, and growing concerns over global economic growth following US President Donald Trump’s tariff announcements," Chintan Mehta, Chief Executive Officer at Abans Financial Services, said.

He said gold prices continue to surge as global uncertainty persists, with the US-China trade war disrupting supply chains and stoking fears of inflation and recession. As markets grapple with these risks, volatility remains elevated, reinforcing gold’s role as a reliable hedge.

"Adding to the bullish sentiment, major banks have turned increasingly positive on gold, pointing to broad-based sell-offs in equities, bonds, and currencies, alongside steady inflows into gold-backed ETFs and sustained central bank buying, Mehta added.

However, silver prices plunged by Rs 1,400 to Rs 98,000 per kg. The white metal had settled at Rs 99,400 per kg in the previous market close.

Meanwhile, spot gold rose to touch a record high of USD 3,357.81 per ounce in the overseas markets. Later, it pared all its gains to trade at USD 3,328.84 per ounce.

"Gold extended gains, hitting a fresh all-time high...after the US Federal Reserve Chair Jerome Powell warned that uncertainty over US trade policy could weigh on the economy, dampening global risk appetite," Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, said.

Spot silver in the Asian market hours fell 1.37 per cent to USD 32.32 per ounce.

ALSO READ: Dr. Aqsa Shaikh campaigns for healthcare, inclusion of transgenders

According to HDFC Securities' Senior Analyst of Commodities Saumil Gandhi, investors are now looking for US macroeconomic data, including initial jobless claims, and the Philadelphia Fed manufacturing number to be released later on Thursday.

Apart from this, market participants will also be awaiting the European Central Bank's (ECB) policy decision later in the day for further impetus on the interest rate cycle, amid tariff worries from the US, Gandhi said.

(With PTI inputs)