Gold prices in India are on a remarkable upward trend, edging closer to the significant ₹1 lakh mark per 10 grams in the national capital. On Monday, gold of 99.9% purity surged by ₹1,650 to touch ₹99,800 per 10 grams, as per data from the All India Sarafa Association. This sharp rise follows a marginal drop of ₹20 in price on Friday, when it closed at ₹98,150.
Similarly, gold prices of 99.5% purity experienced a significant jump, rising by ₹1,600 to reach a new high of ₹99,300 per 10 grams. This variety had ended the previous session slightly lower at ₹97,700 per 10 grams.
The silver market also reflected bullish sentiment, with prices increasing by ₹500 to settle at ₹98,500 per kilogram. This came after a flat performance on Friday, when silver was priced at ₹98,000 per kilogram. The steady momentum in both gold and silver indicates a broader investor interest in precious metals amid ongoing economic uncertainty.
Domestic Futures and Global Markets Show Parallel Surges
The rally in precious metals is not confined to physical markets. Gold futures on the Multi Commodity Exchange (MCX) for June delivery surged by ₹1,621 or 1.7%, reaching an all-time high of ₹96,875 per 10 grams. This signals strong domestic investor confidence in the metal as a hedge against inflation and economic instability.
Globally, the sentiment remains equally bullish. Spot gold prices hit a record high of USD 3,397.18 per ounce during intraday trading before settling slightly lower at USD 3,393.49 per ounce. Gold futures in international markets breached the USD 3,400-per-ounce threshold for the first time ever, marking a steep gain of USD 80, or 2.4%, in a single session.
Silver, too, gained traction on global platforms, with spot prices in Asian trading hours climbing nearly 1% to reach USD 32.85 per ounce. The parallel movement of gold prices and silver prices across global and Indian markets underscores the strength of current demand for safe-haven assets.
Weak Dollar, Tariff Tensions, and Global Demand Drive Rally
The current rally in gold prices and silver prices is fueled by a mix of macroeconomic factors. According to financial analysts, the surge is primarily driven by a weakening U.S. dollar, increasing geopolitical risks, and expectations of rate cuts by major central banks. Trade tensions, particularly the recent tariff moves by the U.S., have also added uncertainty to global markets.
Satish Dondapati, Fund Manager at Kotak Mahindra AMC, noted that gold has gained over 25% so far in 2025, including a 6% rise since the U.S. tariff announcement on April 2. The continued buying by China, global central banks, and institutional investors has reinforced the bullish sentiment.
Jateen Trivedi, VP and Research Analyst at LKP Securities, suggested that as long as Comex gold holds above USD 3,250 and MCX prices remain above ₹91,000, the uptrend is expected to continue. He also pointed out that any dips toward ₹93,000 on the MCX may present renewed buying opportunities but advised speculators to adopt low-risk strategies due to heightened volatility.
With prices approaching psychological thresholds and global dynamics in flux, investors and analysts alike will be watching the precious metals market closely in the coming weeks.
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