Gold Prices Climb Towards ₹1.10 Lakh Milestone
Gold prices continued their upward trajectory this week, edging closer to the ₹1,10,000 mark for 10 grams. On Saturday, the yellow metal touched ₹1,09,800, as per data released by the India Bullion and Jewellers Association (IBJA). This marks a sharp jump from Friday’s price of ₹1,09,420 per 10 grams, setting another record in the domestic market.
The surge reflects a combination of international and domestic factors, ranging from heightened geopolitical tensions to expectations of monetary easing by the US Federal Reserve. Investors, wary of volatility in equities and global uncertainties, have turned to gold as a safe-haven asset.
Geopolitical Uncertainty Fuels Safe-Haven Demand
Market experts attribute the rally to geopolitical conflicts and the prevailing economic outlook. The global political landscape, marked by rising tensions in several regions, has amplified investor appetite for gold. Anuj Gupta, a senior commodities market analyst, noted that the “yellow metal’s demand is surging because of its safe-haven appeal during uncertain times.”
Internationally, spot gold remained steady at $3,643 per ounce, hovering close to its all-time high, according to the World Gold Council. Meanwhile, gold futures for October delivery traded at ₹1,09,356 per 10 grams on the Multi Commodity Exchange (MCX), signaling persistent bullish sentiment among traders.
Gold Rates in Major Indian Cities
The rally has pushed gold prices to record levels across India, with regional variations based on local demand and taxation. On Saturday, New Delhi recorded rates at ₹1,09,410 per 10 grams, while Mumbai saw slightly higher levels at ₹1,09,600. Bengaluru reported ₹1,09,690, and Kolkata recorded ₹1,09,460 per 10 grams.
Chennai, traditionally among the strongest gold markets in India, registered the highest price at ₹1,09,920 per 10 grams. Experts say the southern market often commands a premium due to festive and wedding-related demand.
Federal Reserve’s Policy Outlook a Key Driver
Alongside geopolitical tensions, anticipation of a potential US Federal Reserve rate cut has further bolstered gold prices. A reduction in interest rates typically makes non-yielding assets like gold more attractive, leading to higher demand. With investors bracing for a dovish stance by the Fed, capital inflows into bullion markets have intensified.
The broader financial markets have also seen cautious trading, with gold emerging as a preferred asset class amid uncertainty over global growth, inflation, and central bank policies.
Silver Prices Cross ₹1.28 Lakh Per Kilogram
Silver, often referred to as the “poor man’s gold,” has mirrored the yellow metal’s bullish trend. Prices surged to ₹1,28,710 per kilogram on Saturday, up from ₹1,26,810 the previous day. Futures contracts for September delivery were trading marginally higher at ₹1,28,848 per kilogram on MCX.
The surge in silver reflects both industrial demand and its role as a hedge against inflation. Analysts suggest that silver may continue to track gold’s upward trajectory, with momentum supported by strong demand from renewable energy and electronics sectors.
Expert Outlook: What Lies Ahead?
Commodities analysts remain optimistic about gold’s short-term performance, though they caution that volatility will persist. Gupta explained that while global tensions and expectations of rate cuts will support prices, investors should brace for fluctuations depending on how geopolitical situations evolve and central banks respond.
If current momentum continues, gold could breach the ₹1.10 lakh per 10 grams level in the near term, setting new benchmarks for the precious metal. Meanwhile, silver’s steady climb may also test new highs, keeping the overall bullion market buoyant.
Conclusion
Gold’s near-historic surge reflects the convergence of geopolitical uncertainty, economic volatility, and central bank actions. With demand at an all-time high in both domestic and international markets, the yellow metal remains a critical safe-haven asset. As global factors unfold in the coming weeks, both gold and silver are poised to remain in the spotlight for investors and consumers alike.
