Gold jumps ₹400 to breach ₹85,000 mark as rupee plunges: Report

This is because of the rupee's sharp depreciation, coupled with firm trends in the international markets

Gold prices jumped by as much as ₹400 to hit a record high of ₹85,300 per 10 grams in Delhi, news agency PTI reported, citing data from the All India Sarafa Association.

Sovereign Gold Bond is issued by the Reserve Bank of India (RBI) on the government's behalf. (Representative Image)

Gold prices surged because of the rupee's sharp depreciation, coupled with firm trends in the international markets, according to the report which cited traders.

During the previous session, gold of 99.9% purity ended at ₹84,500 per 10 grams and it settled at ₹84,900 per 10 grams on Saturday.

Gold futures for April 2025 also had hit an all-time high of $2,862.90 per ounce in the international market on Friday, according to the report.

The rupee meanwhile, plunged 55 paise to close at an all-time low of 87.17 (provisional) against the US dollar as US President Donald Trump's administration slapped tariffs on Canada, Mexico, and China, stoking fears among investors of a trade war.

"Gold rallied positively on MCX. Participants increased gold allocations as concerns over a potential Trade War 2.0 from the US triggered safe-haven demand," the report quoted Jateen Trivedi, VP Research Analyst of Commodity and Currency, LKP Securities, as saying.

Meanwhile, April gold futures on the MCX also had jumped by ₹1,127 to hit a record high of ₹83,360 per 10 grams when Union Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26 on Saturday.

Apart from all this, this week is also crucial for commodities with US macroeconomic data such as JOLTs job openings, ISM services, ADP employment and non-farm payroll on the cards, providing trajectory for bullion prices, the report quoted Praveen Singh, Associate VP, Fundamental Currencies and Commodities, Mirae Asset Sharekhan, as saying.