Gold rises Rs 300 to Rs 89,300/10 gram, silver rallies Rs 1,000

Commodity Market News, Gold Rate, Silver Price: Gold prices rose by Rs 300 to trade near a record high at Rs 89,300 per 10 grams in the national capital on Wednesday amid a strong global trend, according to the All India Sarafa Association.

The precious metal had settled at Rs 89,000 per 10 grams in the previous market session. On February 20, gold hit a record high of Rs 89,450 per 10 grams.

"Gold prices continued their upward trend on Wednesday, extending their winning streak for the third day in a row as the demand for safe-haven assets and soft US dollar supported yellow metals," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

Further, the implementation of US tariffs and counter-retaliation by Canada and China increased the chance of escalation of the trade war and a global economic slowdown -- a situation favouring gold demand for safety, Gandhi said.

Extending the gains for the third straight session, gold of 99.5 per cent purity advanced by Rs 300 to Rs 88,900 per 10 grams. It had settled at Rs 88,600 per 10 grams on Tuesday.

Silver prices also rallied by Rs 1,000 to Rs 99,000 per kg from Tuesday's closing level of Rs 98,000 per kg.

On the other hand, gold futures for April delivery on the MCX went up by Rs 38 to Rs 86,064 per 10 grams.

Globally, gold futures for April delivery rose 0.18 per cent to USD 2,926 per ounce. However, spot gold is trading flat at USD 2,917.72 per ounce.

"Gold is trading near USD 2,925, but the sharp upside is limited as US Commerce Secretary Howard Lutnick suggested a possible tariff relief for Canada and Mexico. If an agreement is reached and levies are eased, it could put downward pressure on gold prices," Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, said.

Chainwala also said traders are closely watching services PMI data from major global economies and US private payroll numbers for insights into the global economic outlook.

Comex silver futures in the Asian market hours quoted 1.63 per cent higher at USD 32.91 per ounce.

Key US macroeconomic data, including ADP Nonfarm Employment, and non-farm payrolls will be closely monitored by the market participants for the trajectory of the bullion prices, according to Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities.