It had closed at Rs 73,050 per 10 grams on Monday.
Similarly, silver price surged by Rs 800 to hit a record high of Rs 86,500 per kg.
“Spot gold (24 carat) prices in Delhi markets are trading at a new record high of Rs 73,750 per 10 grams, up by Rs 700, tracking positive signals from overseas markets,” Saumil Gandhi, senior analyst, commodities at HDFC Securities, said.
On global markets, Comex spot gold was trading at $2,370 per ounce, up $15 from the previous close.
Gold rose as demand for the safe-haven asset increased amid fears of escalating tensions in the Middle East following Iran’s unprecedented attack on Israel last week. Investors’ attention has turned to a possible counterattack that could increase the risk of a full-blown war between the two countries, which would have pushed up the safe-haven premium on bullion prices, a Gandhi said. Silver was also higher at $28.40 an ounce. At the previous close, it finished at $28.25 per ounce.
Additionally, investors will look forward to U.S. Federal Reserve Chairman Jerome Powell’s speech on Tuesday following last week’s higher-than-expected inflation data, which will provide more insight into the policy outlook monetary.
However, high US Treasury yields and strong dollar will limit the rise in precious metals prices and keep the metal volatile, said Praveen Singh, Associate Vice President, Fundamental Currencies and Commodities at Sharekhan by BNP Paribas.
Meanwhile, in futures trading on the MCX, the most traded gold contract of June was trading at Rs 72,626 per 10 grams, up Rs 349 or 0.48 percent. During the day, it touched an intra-day high of Rs 72,927 per 10 grams.
Besides, the contract for delivery of the precious metal in August was trading at Rs 72,800 per 10 grams.
However, the May silver contract was trading lower by Rs 314 or 0.37 percent at Rs 83,537 per kg on the Multi Commodity Exchange (MCX).
“MCX gold surged, while Comex gold hit $2,370 an ounce with overnight gains.
“Looking ahead, sentiment remains bullish for gold as geopolitical tensions persist and intensify,” said Jateen Trivedi, vice president research analyst – commodities and currencies at LKP Securities.
