Gold and silver prices reached fresh lifetime highs with MCX gold contracts jumping over Rs 1,600.00 per 10 grams and silver futures rallying Rs 1,900.00 per kg. October Gold futures hit a lifetime high of Rs 1,03,760.00 per 10 gram, gaining 1.60%, while December Silver rose 1.60% with gains over Rs 1,900.00.

Market Performance

The surge was driven by strength in global markets and rupee weakness against the US dollar. On COMEX, gold traded at $3,508.50 per troy ounce, up $34.20, while silver was at $40.30 per troy ounce, gaining $0.60. Both metals have performed strongly this year, with gold rallying over 35.00% and silver rising 36.00%.

Factors Influencing Gold Prices

Several factors have contributed to the surge in gold prices:

• Weakening Rupee: The Indian rupee ended down 0.65% at 88.20 per USD, making imports more expensive.
• Trade Tariff Concerns: Ongoing trade tensions have increased gold's appeal as a safe-haven asset.
• Unresolved India-US Trade Issues: Continued trade disputes between India and the US have added to economic uncertainties.

Price Expectations

Analysts expect gold prices to remain in the Rs 1,00,000.00 - Rs 1,05,000.00 range in the near term.

Global Economic Context

As global economic uncertainties persist and monetary policy expectations evolve, gold continues to attract investor interest. The coming days may see further price movements as markets digest upcoming economic data and central bank communications.

Investors and market participants are advised to closely monitor global economic indicators and geopolitical developments that could impact precious metal prices.

Gold prices are expected to maintain their positive momentum as India enters the festive season, according to recent research by Aditya Birla Sun Life AMC. The precious metal has shown remarkable performance in both international and domestic markets, driven by a combination of global economic factors and local demand.

Global Gold Market Trends

International gold prices experienced a significant uptick in August, rising over 1% to reach $3,335.00 per ounce. This surge can be attributed to several factors:

• Weakening of the US dollar
• Anticipation of potential rate cuts by the US Federal Reserve
• Persistent inflation concerns

The yellow metal has delivered an impressive 28.00% year-to-date return in the international market, highlighting its strong performance as a safe-haven asset.

Domestic Gold Market Performance

In the Indian market, gold has shown even more robust growth:

• Domestic gold prices climbed 1.60% in August, reaching ₹99,665.00 per 10 grams
• Year-to-date increase stands at a substantial 31.00%
• The rupee's weakness has played a role in narrowing domestic discounts from $27.00 per ounce in June to $3.70 per ounce by mid-August

Jewellery Market and Import Trends

The jewellery market in India remains optimistic as the festive season approaches:

• Manufacturers are actively restocking their inventories
• Focus has shifted towards lighter-weight designs to cater to changing consumer preferences
• Gold imports surged to $4.00 billion in July, indicating strong demand

Gold ETFs and RBI Reserves

The appeal of gold as an investment continues to grow:

• Gold ETF inflows remained strong at ₹1,260.00 crore in July
• Assets under management for gold ETFs have seen a 96.00% year-to-date increase
• The Reserve Bank of India's gold reserves held steady at 880.00 tonnes, accounting for about 12.00% of foreign exchange reserves

As India gears up for the festive season, the gold market appears well-positioned for continued growth. The combination of global economic factors, domestic demand, and traditional affinity for gold during festivals suggests that the precious metal may continue to shine in the coming months.