New Delhi| September 1 ,2025|SKY LINK TIMES
Gold and silver prices soared to fresh all-time highs on Monday, fueled by global market optimism, festive demand at home, and expectations of an imminent interest rate cut by the US Federal Reserve.
On the Multi Commodity Exchange (MCX), gold futures for October delivery surged 2.03% (₹2,113) to ₹1,05,937 per 10 grams, while December contracts gained 1.6% (₹1,682) to touch ₹1,06,529 per 10 grams. Silver also continued its rally, with December futures climbing 2.13% (₹2,597) to a historic ₹1,24,470 per kilogram.
Why Are Bullion Prices Rising?
Analysts say the surge is being driven by a mix of overseas cues, geopolitical tensions, and domestic buying trends.
🔸Tariff escalation: “Gold marked an all-time high amid tariff escalations, which are continuously supporting buying in bullion,” said Manav Modi, Analyst (Precious Metal Research) at Motilal Oswal Financial Services.
🔸US Fed policy outlook: Markets widely expect the US Federal Reserve to cut interest rates later this month to support a slowing economy. Lower interest rates make non-yielding assets like gold more attractive to investors.
🔸Indian rupee weakness: The rupee hit an all-time low against the US dollar, further inflating local gold and silver prices, according to Rahul Kalantri, Vice President (Commodities) at Mehta Equities.
🔸Festive and wedding demand: With the festive season and wedding purchases in full swing, physical demand in India has also added momentum.
🔸China factor: Reports of buying by the People’s Bank of China have strengthened the global bullish sentiment.
Overseas Cues Boosting Precious Metals
Internationally, spot silver crossed $40 an ounce for the first time since 2011, rising as much as 2.1% to $40.54 an ounce. The metal has now gained nearly 40% so far in 2025.
Gold also moved closer to its April peak above $3,500 an ounce, advancing 1.1% in Monday’s trade. Bloomberg data showed both palladium and platinum also rising to their highest levels in a week.
“The rally in bullion has suddenly sprung to life as both fundamentals and technicals aligned,” noted Charu Chanana, strategist at Saxo Capital Markets. She added that breaching key resistance levels of $3,450 for gold and $40 for silver triggered momentum buying by investors.
What Lies Ahead?
Traders are closely watching the upcoming US jobs report due later this week, which may strengthen the case for a rate cut by the Federal Reserve in its September policy meeting. Any such move could further fuel the demand for gold and silver as safe-haven assets.
With rising domestic demand during the festive and wedding season, coupled with global economic uncertainties, bullion prices may remain volatile but tilted towards further highs.
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