Gold Hits ₹1.16 Lakh, Silver Crosses ₹1.36 Lakh on Global Cues; Both at Record Highs

Gold and silver prices recorded a sharp spike on the back of positive global indicators. On Monday, prices of gold in the capital city of Delhi surged by ₹2,200 to a record high of ₹1,16,200 per 10 grams. 99.5 percent purity gold increased by ₹2,150 to an all-time high of ₹1,15,650 per 10 grams. Meanwhile, silver prices rallied by a whopping ₹4,380 to an all-time high of ₹1,36,380 a kilogram (including all taxes). The All India Sarafa Association corroborated the same.

Both gold and silver are at all-time highs in the domestic market, consistent with an international bull trend. Spot gold overseas increased over 1 percent to a record high of $3,728.43 an ounce. During trading, it touched a high of $43.80 per ounce.

Saumil Gandhi, Senior Analyst (Commodities) at HDFC Securities, said that dovish signals from the US Federal Reserve (Fed) suggest two additional interest rate cuts are likely by the end of this year. This could limit the upside in the dollar and Treasury yields, while supporting the rise in precious metal prices. Gandhi said that apart from this, strong investment in exchange-traded funds and continued interest from central banks have also contributed to the rise in bullion prices.

Precious metal prices have increased by Rs 37,250 per 10 grams or 47.18 percent in the current calendar year. This has increased from Rs 78,950 per 10 grams on December 31, 2024.

Silver prices have increased by Rs 46,680 per kg or 52.04 percent so far this year, reaching Rs 89,700 per kg on December 31, 2024.

Kaynat Chainwala, AVP of Commodity Research at Kotak Securities, said, "Spot gold prices rose to a new all-time high of $3,728 per ounce as investors await comments from several Federal Open Market Committee (FOMC) officials and Fed Chairman Jerome Powell's keynote address on Tuesday, which will provide additional policy guidance."

Praveen Singh, Head of Commodities and Currency at Mirae Asset Sharekhan, said, "Investors will closely monitor Fed Governor Stephen Mirn's speech at the Economic Club of New York. The US PMI data report will be released on Tuesday, which will provide further insight into the monetary policy outlook."

Jigar Trivedi, Senior Research Analyst at Reliance Securities, said, "Strong fundamentals supported silver prices, and limited supply also helped maintain the uptrend. On the demand side, strong consumption from the solar, electric vehicle, and electronics sectors provided additional support."