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The precious metal prices of 99.9 per cent purity soared by Rs 700 to hit a fresh all-time high of Rs 91,950 per 10 grams. It had concluded at Rs 91,250 per 10 grams on Tuesday.
Gold prices of 99.5 per cent purity also rallied by Rs 700 to hit a record high of Rs 91,500 per 10 grams.
Traders said increased buying by local jewellers to meet festive and wedding season demand and a firm trend in the overseas markets mainly lifted gold prices to this year's highest level.
Silver prices also surged by Rs 1,000 to hit a record peak of Rs 1,03,500 per kg from Tuesday's closing level of Rs 1,02,500 per kg.
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In futures trade, gold futures for April delivery rose by Rs 19 to Rs 88,745 per 10 grams. In the morning trade, it climbed Rs 288 to breach the psychological level of Rs 89,000 per 10 grams.
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"Gold prices maintained an overall upward trend but remained range-bound ahead of the highly anticipated Fed policy and statement tonight," Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said.
In the international markets, spot gold rose 0.15 per cent to USD 3,039.22 per ounce. During the session, it hit a record high of USD 3,045.39 per ounce.
Meanwhile, gold futures in the Asian market hours eked out another fresh all-time high by touching USD 3,052.31 per ounce.
"Gold prices have hit record highs on safe-haven demand as escalating Middle East tensions and fears of a trade war under Trump's administration have created global economic uncertainty comparable to levels seen during the peak of the COVID-19 pandemic.
"This uncertainty has prompted central banks worldwide to stockpile gold at unprecedented levels, diversifying their reserves away from US Treasuries," Chintan Mehta, Chief Executive Officer at Abans Financial Services Ltd, said.
Additionally, inflows into gold exchange-traded funds (ETFs) have surged, with February 2025 seeing record inflows of USD 9.4 billion, further supporting the bullion prices, Mehta added.
According to HDFC Securities' Senior Analyst of Commodities Saumil Gandhi, traders are closely watching the US Federal Reserve's Federal Open Market Committee (FOMC) meeting outcome.
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Market participants will also focus on economic projections and Fed Chair Jerome Powell's press conference, which could provide clues for future interest rate paths and provide additional direction for bullion, Gandhi said.
On the market outlook, commodities market experts predicted that gold could climb further, potentially reaching USD 4,000 per ounce by the end of 2025, driven by ongoing geopolitical risks, inflationary pressures, and sustained central bank demand.
However, if economic conditions improve later in the year, sentiment in the gold market may shift, they said.
