NEW DELHI: Gold prices soared by ₹5,080 on Tuesday, hitting a record high of ₹1,12,750 per 10 grams in the national capital, tracking strong global trends. The precious metal has surged by nearly 43% this year, gaining ₹33,800 per 10 grams since December 31, 2024, when it was priced at ₹78,950 per 10 grams.
The All India Sarafa Association reported that 99.9% purity gold had closed at ₹1,07,670 per 10 grams on Monday. Silver also saw a sharp rise, jumping ₹2,800 to a record ₹1,28,800 per kilogram (inclusive of all taxes), up from ₹1,26,000 per kilogram in the previous session.
In global markets, gold hit an all-time high of USD 3,659.27 per ounce on Tuesday, later trading at USD 3,652.72 per ounce, up USD 16.81 or 0.46%. Traders attributed the rally to weaker-than-expected US labor market data last week, which raised expectations of monetary easing and drove investors toward safe-haven assets. The dollar’s decline further supported the uptrend in bullion prices. The dollar index, which tracks the greenback against six major currencies, stood at 97.29, down 0.17%.
“Gold prices have reached multiple all-time highs this year, climbing over 35% in international markets,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities. He noted that strong central bank demand, inflows into exchange-traded funds, and speculation about interest rate cuts are fueling the rally. Heightened geopolitical tensions and concerns over the impact of US tariffs are also driving safe-haven buying.
Trivesh D, Chief Operating Officer at brokerage firm Tradejini, added, “This surge reflects a perfect storm of macro factors. The US Federal Reserve is expected to implement two to three rate cuts next quarter, pushing real yields lower and enhancing gold’s appeal. Meanwhile, central banks are diversifying reserves away from US Treasury yields, a trend ongoing for over three years.”
He further highlighted that geopolitical risks—from the ongoing Russia-Ukraine conflict to rising tariff threats—are solidifying demand for safe-haven assets.
Kaynat Chainwala, AVP of Commodity Research at Kotak Securities, said market participants will closely monitor US inflation data later this week, which could influence Q4 rate-cut expectations, though it is unlikely to affect anticipated moves in September.
