Gold prices in India hit a fresh record of ₹1,11,750 per 10 grams on the MCX, tracking global highs as traders awaited key US inflation data and fresh Federal Reserve guidance. Silver followed suit, breaching ₹1,33,500 per kilogram. A weaker rupee, subdued equity sentiment, and strong central bank buying continue to fuel safe-haven demand. Analysts expect bullion to stay firm, with silver seen testing the ₹1.40–1.50 lakh range if momentum sustains.
Core Development
Gold futures for December delivery rose ₹799 (0.72%) to ₹1,11,750 per 10 grams on MCX, while October futures climbed to ₹1,10,608. Globally, gold traded at $3,732.62 per ounce, near its lifetime high.
Silver futures for March delivery surged ₹2,446 (1.86%) to ₹1,33,582 per kg, while December contracts hit ₹1,32,311.
Key Drivers / Issues
The US Fed’s first rate cut of 2025 and expectations of two more cuts this year.
Geopolitical tensions and uncertainty from global trade tariffs.
Central bank gold purchases and steady ETF inflows supporting long-term demand.
Silver demand boosted by solar panels, EVs, 5G, and battery storage applications.
Stakeholder Impact
For investors, bullion remains an attractive hedge against inflation and currency weakness. Jewelers and consumers face higher acquisition costs, especially ahead of the festive season. For the global economy, rising gold prices signal caution as traders brace for US inflation data and policy outcomes.
Industry & Policy Reactions
Reliance Securities’ Jigar Trivedi said expectations of continued Fed easing have been a major boost to gold, which has surged 40% this year.
Emkay Global’s Riya Singh highlighted silver’s industrial demand, noting its sharper upward trajectory compared to gold.
JM Financial Services’ Pranav Mer projected silver could test ₹1.40–1.50 lakh per kg if momentum sustains.
Challenges Ahead
Potential volatility if US inflation data surprises on the upside.
Dollar strength could cap further bullion gains.
High domestic prices may dent jewelry demand during festive and wedding seasons.
Strategic Outlook
With safe-haven flows strong and industrial demand for silver robust, bullion prices are likely to remain elevated. Traders will watch US inflation and Fed commentary for cues on whether gold extends its rally beyond record highs.
Why This Matters
Gold and silver prices act as key barometers of global risk sentiment. Their record surge signals investors’ growing preference for safe-haven assets amid monetary easing, trade uncertainty, and a weakening rupee.
