In a significant market development, gold and silver prices have surged to new heights, with gold crossing the ₹1 lakh mark and silver reaching an all-time high. This surge comes despite the implementation of 50% US tariffs on India, highlighting the complex interplay of global economic factors affecting precious metals.

Gold and Silver Futures Soar

Gold October futures on the Multi Commodity Exchange (MCX) saw a modest increase of 0.03%, reaching ₹1,01,575.00 per 10 grams. This milestone comes as a surprise to many, considering the recent imposition of US tariffs on Indian goods.

Meanwhile, silver has outperformed gold, with September contracts surging by 0.65% to hit a new all-time high of ₹1,16,850.00 per kilogram. This remarkable performance underscores the strong demand for precious metals in the current economic climate.

Factors Driving Precious Metals Rally

Several key factors are contributing to the bullish trend in precious metals:

1. Expected Fed Rate Cut: Market participants are anticipating a 25-basis-point rate cut by the Federal Reserve next month, with an 88% probability according to the CME FedWatch Tool. Lower interest rates typically boost the appeal of non-yielding assets like gold and silver.

2. Geopolitical Tensions: Ongoing conflicts, including Ukraine's strikes on Russian energy infrastructure, are fueling demand for safe-haven assets.

3. Federal Reserve Independence Concerns: President Trump's threats to dismiss Fed Governor Lisa Cook have raised questions about the central bank's independence, further supporting precious metals as a hedge against uncertainty.

4. Weakening US Dollar: The US Dollar Index fell 0.09% to 98.14, making dollar-denominated gold and silver more attractive to international buyers.

5. Rupee Weakness: The Indian rupee trading near lifetime lows against the dollar has made precious metals more expensive in local currency terms.

Market Outlook

Analysts are bullish on both gold and silver, projecting the following trading ranges:

Physical Gold Prices in India

The price of physical gold varies across major Indian cities, ranging from ₹56,696.00 to ₹62,184.00 per 8 grams, depending on purity and location.

Conclusion

The surge in gold and silver prices reflects a complex economic landscape marked by geopolitical tensions, monetary policy expectations, and currency fluctuations. As these factors continue to evolve, investors and market participants will be closely watching how they impact the precious metals market in the coming weeks.

Gold and silver prices experienced a downturn on Thursday, influenced by signs of potential de-escalation in geopolitical tensions. The precious metals market, often considered a safe haven during uncertain times, saw a decrease in demand as investor sentiment shifted.

Gold Market Update

Gold prices in India fell to Rs 99,510 per 10 grams, according to the India Bullions Association, marking a decrease from Wednesday's rate of Rs 99,530. The yellow metal has managed to stay below the psychological barrier of Rs 1,00,000 in the Indian market.

Looking at the price trends over the past six months, gold has shown significant fluctuations:

• Highest price: Rs 1,02,090 on August 10
• Lowest price: Rs 87,100 on April 7

City-wise Gold Rates

Gold prices varied across major Indian cities:

Chennai recorded the highest gold price at Rs 99,620 per 10 grams, while New Delhi had the lowest at Rs 99,160.

Global Gold Market

In the international market, spot gold traded lower at $3,344.45 per ounce, reflecting the global sentiment affecting precious metal prices.

Silver Market Trends

Silver prices also faced downward pressure:

• Global market: Silver prices corrected by 0.86%, closing at $37.98 levels in the previous week.
• Indian market: MCX silver prices fell by 0.82% to Rs 1,13,943.
• Current rate: The India Bullion Association reported silver prices at Rs 1,13,150 per kilogram.

The simultaneous decline in both gold and silver prices underscores the current market dynamics, potentially influenced by easing geopolitical tensions and changing investor preferences. As always, precious metal prices remain subject to various factors, including global economic conditions, currency fluctuations, and geopolitical events.