New Delhi (Rajeev Sharma): Precious metal prices surged sharply in early trade on Thursday, with gold and silver hitting new lifetime highs in the domestic futures market amid a rally in global prices and a significant weakening of the rupee.
Gold futures climbed by about 6 per cent to breach the Rs 1.75 lakh level, reaching Rs 1,75,869 per 10 grams during morning trade. Silver followed a similar trajectory, rising nearly 6 per cent to scale a fresh record of Rs 4,07,456 per kilogram.
Traders attributed the sharp rise to strong momentum in overseas bullion markets, where prices have been gaining on the back of economic uncertainty and increased demand for safe-haven assets. The steep fall in the rupee, which hovered close to its historic low against the US dollar, further boosted domestic prices by raising the cost of imports.
Market experts said the combination of global risk factors and currency pressure has created a favourable environment for precious metals, pushing prices to uncharted territory. They added that bullion markets are likely to remain volatile as investors react to developments in international markets and currency movements.
