Silver also surged by `6,000 to hit a lifetime high of `1,85,000 per kg

Gold prices on Tuesday surged by Rs 2,850 to reach an all-time high of Rs 1,30,800 per 10 grams in the national capital, driven by heavy festive buying by retailers and jewellers ahead of 'Dhanteras'.

According to the All India Sarafa Association, the precious metal of 99.9 per cent purity had closed at Rs 1,27,950 per 10 grams on Monday.

Gold of 99.5 per cent purity also advanced by Rs 2,850 to hit a record Rs 1,30,200 per 10 grams (inclusive of all taxes), from the previous close of Rs 1,27,350 per 10 grams.

So far this year, gold prices have increased by Rs 51,850 or 65.67 per cent from Rs 78,950 per 10 grams on December 31, 2024.

"Gold and silver have hit new highs, propelled by geopolitical concerns, supply constraints, and strong domestic investment demand, amplified by a weaker rupee. The ascending trend is intact, but the steep 'V-shaped' price action introduces significant volatility risk," Dilip Parmar, Research Analyst at HDFC Securities, said.

Silver also surged by Rs 6,000 to hit a lifetime high of Rs 1,85,000 per kilogram (inclusive of all taxes), marking its fifth consecutive day of gains. The white metal had settled at Rs 1,79,000 per kg in the previous market session.

Silver prices have surged by Rs 95,300 or 106.24 per cent in the current calendar year.