New Delhi, Sep 9: Gold prices in Delhi soared by Rs 5,080 on Tuesday, hitting a record high of Rs 1,12,750 per 10 grams, driven by strong global cues and expectations of US Federal Reserve rate cuts.
According to the All India Sarafa Association, gold of 99.9% purity had previously settled at Rs 1,07,670 on Monday.
The precious metal has now risen by Rs 33,800 per 10 grams—or nearly 43%—since the start of the year, when it was priced at Rs 78,950 on December 31, 2024.
Silver also witnessed a sharp rally, surging Rs 2,800 to touch a fresh high of RS 1,28,800 per kg, inclusive of taxes.
It had closed at RS 1,26,000 in the previous session.
In international markets, gold touched an all-time high of USD 3,659.27 per ounce before easing slightly to USD 3,652.72, still up 0.46% on the day.
The surge follows weak labour market data in the US, which raised expectations of monetary easing by the Federal Reserve.
The retreat of the US dollar further supported bullion prices, with the dollar index down by 0.17% to 97.29.
Analysts cite a mix of economic and geopolitical factors behind the ongoing rally. Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said demand from central banks, growing investments in exchange-traded funds (ETFs), and anticipation of interest rate cuts are key drivers.
He added that geopolitical tensions and concerns over US tariff policies have strengthened the case for safe-haven assets like gold.
Trivesh D, Chief Operating Officer at brokerage firm Tradejini, called it “a perfect storm of macro factors.”
He noted that gold has already surged more than 35% in global markets this year.
With the Fed expected to implement two or three rate cuts in the coming quarter, real yields are likely to fall further, enhancing gold’s appeal.
He also highlighted the long-term trend of central banks reducing reliance on US Treasury yields, weakening the dollar’s dominance.
Additionally, the ongoing Russia-Ukraine war, rising tariff threats, and broader geopolitical instability have pushed investors towards gold and silver as hedges against uncertainty.
Kaynat Chainwala, AVP Commodity Research at Kotak Securities, said investors are now closely watching upcoming US inflation data, which could impact the trajectory of expected rate cuts in Q4.
However, most analysts believe it is unlikely to change expectations for a rate move in September.
With precious metals continuing to break records, market participants expect volatility to persist as economic and geopolitical developments unfold globally. (PTI)
