Gold Prices Soar ₹6,250 to Breach ₹96,000 Mark Amid U.S.-China Trade War Escalation

New Delhi: Gold prices skyrocketed by ₹6,250 on Friday, catapulting to an all-time high of ₹96,450 per 10 grams in the national capital, driven by intensified demand from local jewellers and a strong global rally amid mounting geopolitical tensions.

According to the All India Sarafa Association, the sudden spike in domestic gold prices mirrors a global uptrend triggered by renewed fears over the escalating trade war between the United States and China.

The rally in gold was accompanied by a sharp rise in silver prices, which jumped by ₹2,300 to settle at ₹95,500 per kilogram, up from the previous close of ₹93,200.

Safe-Haven Rush Fuels Global Bullion Surge

Analysts said the renewed safe-haven appetite for precious metals has been reignited by heightened global uncertainty, with investors seeking refuge from volatile equity markets and inflationary pressures stemming from trade disruptions.

“Gold hitting record highs globally due to safe-haven buying has provided strong momentum for Indian prices. The surge reflects both geopolitical anxiety and inflation hedging,” said a senior commodities analyst with a Mumbai-based brokerage.

Tensions between the U.S. and China have flared in recent weeks, with the Biden administration imposing new tariffs on Chinese imports and Beijing retaliating with levies on American goods. The uncertainty has rippled across global markets, boosting demand for stable assets such as bullion.

Domestic Demand Adds to Price Momentum

On the domestic front, strong buying by jewellers and retailers, especially ahead of the upcoming wedding and festive season, has compounded the price surge.

“There’s visible traction at the retail level. Anticipating further price hikes, buyers are advancing purchases,” said Suresh Hundia, a veteran bullion trader in Delhi.

Traders also pointed to supply constraints and currency volatility as additional contributors to the price escalation.

Outlook Remains Bullish Amid Global Instability

With gold breaching the ₹96,000 mark for the first time, market participants expect prices to remain buoyant in the near term. Globally, spot gold hovered near $2,475 per ounce on Friday, up 2.1% for the week—marking its strongest run in nearly a year.

Silver, meanwhile, followed gold’s upward trajectory, supported by both safe-haven buying and strong industrial demand, particularly from the renewable energy and electronics sectors.

“As long as global macro risks persist, and real interest rates remain low, both gold and silver will remain attractive to investors,” said an ICICI Direct commodities report.