Gold prices surged to a fresh record high on Tuesday, crossing the ₹1,10,000 mark, as heightened safe-haven demand and anticipation of a US Federal Reserve rate cut boosted the yellow metal.
According to the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold stood at ₹10,951 per gram as of 10:17 am. Earlier in the day, gold touched ₹1,10,650 per 10 grams, up from ₹1,09,820 on Monday.
In global markets, spot gold was priced at $3,679 per ounce, just shy of Monday’s all-time high of $3,685, World Gold Council data showed.
Market analysts attributed the rally to rising geopolitical tensions, expectations of a US Fed rate cut on September 17, and a weakening US dollar. They expect gold and silver to continue trading with a positive bias this week.
City-wise gold prices are as follows: New Delhi: ₹1,10,260 per 10 gm; Mumbai: ₹1,10,450; Bengaluru: ₹1,10,540; Kolkata: ₹1,10,310; and Chennai: ₹1,10,770 (highest among metros).
Silver prices also moved higher, with October 5 futures on MCX trading at ₹1,29,452 per kg. Analysts noted that the rally in silver is partly driven by growing industrial demand, particularly from the electric vehicle and solar sectors.
India’s gold exchange-traded funds (ETFs) recorded net inflows of $233 million in August 2025, a 67% jump from $139 million in July, according to World Gold Council data.
Meanwhile, gold’s sharp rise continues to weigh on inflation. In the latest August CPI print, gold’s 40% year-on-year price surge contributed nearly 43 basis points to core inflation.
(With inputs from IANS)
