Gold Prices Surge by Rs 2,200, Reaching New High of Rs 1,16,200 per 10 gm; Silver Also Sets Record
Gold prices soared in the Indian bullion market on Monday, reaching a record high of Rs 1,16,200 per 10 grams, a significant increase of Rs 2,200 from the previous close. This surge comes as investors respond to strong global market cues and anticipate comments from the US Federal Reserve. The price of gold had settled at Rs 1,14,000 per 10 grams on Friday, according to the All India Sarafa Association. Silver also experienced a remarkable rise, hitting an all-time high of Rs 1,36,380 per kilogram.
Factors Driving Gold Prices Upward
Analysts attribute the recent spike in gold prices to several factors, including bullish trends in international markets and continued investments in exchange-traded funds. Central banks’ ongoing interest in gold has also contributed to the upward momentum. Saumil Gandhi, a Senior Analyst at HDFC Securities, noted that both gold and silver are trading at record levels in the domestic market, reflecting the strong performance in international markets. He emphasized that a dovish signal from the US Federal Reserve, which may indicate two additional rate cuts by the end of the year, could limit gains in the US dollar and Treasury yields, thereby supporting precious metal prices.
Gold has seen a remarkable increase of Rs 37,250 per 10 grams, or 47.18 percent, since the beginning of the year, climbing from Rs 78,950 per 10 grams on December 31, 2024. This significant rise highlights the growing appeal of gold as a safe-haven asset amid economic uncertainties.
Silver Prices Reach New Heights
Silver prices have also surged, gaining Rs 4,380 to reach a record high of Rs 1,36,380 per kilogram, inclusive of all taxes. This increase follows a closing price of Rs 1,32,000 per kilogram on Friday. Since the start of 2025, silver has appreciated by Rs 46,680 per kilogram, or 52.04 percent, from Rs 89,700 per kilogram at the end of the previous year. The robust demand for silver, particularly from sectors such as solar energy, electric vehicles, and electronics, has played a crucial role in driving prices higher.
Jigar Trivedi, a Senior Research Analyst at Reliance Securities, pointed out that strong fundamentals are supporting silver prices. The tight supply of silver, combined with increased consumption in various industries, has helped maintain upward momentum in the market.
Global Market Trends and Future Outlook
On the global front, spot gold prices rose by more than 1 percent, reaching a record $3,728.43 per ounce. Investors are closely monitoring upcoming remarks from Federal Open Market Committee officials and a key speech by Fed Chair Jerome Powell scheduled for Tuesday. Kaynat Chainwala, AVP of Commodity Research at Kotak Securities, highlighted that the anticipation surrounding these events is contributing to the bullish sentiment in the gold market.
Praveen Singh, Head of Commodities and Currencies at Mirae Asset ShareKhan, noted that investors will pay particular attention to Fed Governor Stephen Miran’s speech at the Economic Club of New York, as well as the upcoming US PMIs data report, which will provide further insights into the monetary policy outlook. Spot silver was also trading higher at $43.61 per ounce, reaching an intra-day high of $43.80 per ounce.
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