Precious Metal Surge: Gold and Silver Hit Record Highs

Gold and silver prices have hit record highs in the national capital amidst Middle East conflict and a rate cut by China's central bank. Investors are shifting towards safe haven assets, with silver demand also spurred by industrial uses and the electric vehicle sector.

Gold prices soared by Rs 750 to reach a record Rs 80,650 per 10 grams, while silver skyrocketed by Rs 5,000 per kg in the national capital, marking unprecedented highs, according to data from the All India Sarafa Association. The surge was spurred by intensified Middle East conflicts and the People's Bank of China's interest rate cut, prompting investors to flock to safe-haven assets, traders revealed.

The silver market has experienced a bullish trend, driven primarily by industrial demand and gold's impressive rally. Silver prices on Monday settled at a fresh high of Rs 99,500 per kg, reflecting a Rs 5,000 jump. Analysts suggest this upward momentum might continue, influenced by increased demand in photovoltaic applications and the electric vehicle sector.

With the festival and wedding seasons underway, a spike in local jeweller purchases has bolstered gold prices. The rising global demand and diminishing equity markets have further amplified gold's attractiveness as a safe-haven asset, market insiders added. Despite a sharp 7% correction in July due to a customs duty cut, bullion prices have rebounded robustly, driven by seasonal demand and anticipations of further gains.

(With inputs from agencies.)