Daijiworld Media Network - New Delhi
New Delhi, Sep 6: Gold prices in India have surged by over Rs 6,000 per 10 grams in just 30 days, hitting record highs in both retail and futures markets, driven by a mix of geopolitical tensions, tariff concerns, and robust central bank demand.
On Friday, gold futures for October 3 expiry on the Multi-Commodity Exchange (MCX) touched a new lifetime high of Rs 1,07,740 per 10 grams, marking an increase of nearly Rs 6,500 from a month earlier.
Meanwhile, retail prices for 24-carat gold stood at Rs 1,06,338 per 10 grams, up from Rs 1,00,076 on August 5, according to the Indian Bullion and Jewellers Association (IBJA) — a rise of Rs 6,262.
Key Drivers Behind the Surge
• Geopolitical instability, including:
o The Russia-Ukraine war
o Ongoing conflict in Gaza
o Renewed trade tensions due to former U.S. President Donald Trump’s tariff warnings against countries like India, Brazil, and Russia
• Safe-haven buying amid concerns over global inflation, slowdown fears, and uncertainty around U.S. economic data
• Strong central bank buying across the world, especially in emerging markets, has further lifted bullion demand.
• Market participants are also cautious ahead of key U.S. employment data, with investors seeking safety in precious metals.
Weekly Highlights:
• In just the past week, 24-carat gold prices rose by Rs 1,845.
• Since August 18, gold has surged by ?6,715 per 10 grams (from Rs 99,623 to Rs 1,06,338).
• On September 4, gold gained Rs 1,597 in a single day, jumping from Rs 1,04,424 to Rs 1,06,021.
Silver Also at Record Levels
Silver, too, has followed gold’s bullish trend:
• Hit an all-time high of Rs 1,23,207 per kg on September 4
• On Friday, it closed marginally lower at Rs 1,23,170 per kg, still up Rs 10,748 from Rs 1,12,422 on August 5
• Silver gained Rs 370 this week, rising from Rs 1,22,800 on Monday
Outlook
Despite bouts of profit-taking, the upward momentum in gold and silver continues in both domestic and international markets. Analysts suggest that unless geopolitical tensions ease or inflation expectations drop significantly, the bullish trend in bullion may persist.
Investors and jewellery buyers are advised to monitor global cues, interest rate signals, and U.S. macroeconomic data, which are likely to influence further price movements in the coming weeks.