NEW DELHI– Gold and silver prices surged to multi-year highs on Tuesday, driven by renewed bets of aggressive Federal Reserve rate cuts after weak U.S. labor market data sent the dollar lower and Treasury yields sliding.
On the Multi Commodity Exchange (MCX), December gold futures jumped Rs 458, or 0.41 percent, to a lifetime high of Rs 1,10,047 per 10 grams. In the spot market, 24-carat gold traded at Rs 10,804 per gram, according to the India Bullion and Jewellers Association (IBJA). Silver, meanwhile, soared to a 14-year peak in international trade.
The rally followed U.S. non-farm payrolls data showing just 22,000 jobs added in August, far short of forecasts of 75,000, while unemployment rose to 4.3 percent. The weaker data has bolstered expectations of a 75-basis-point rate cut by the Fed this year, with futures markets pricing a 91 percent chance of at least a 25-basis-point cut at the central bank’s September 17 meeting.
Adding momentum to precious metals, the U.S. dollar index slipped to a six-week low and 10-year Treasury yields fell, boosting demand for non-yielding assets like gold and silver. Analysts also pointed to growing industrial demand for silver, particularly from electric vehicles and solar energy, as an additional tailwind.
“On the technical front, gold has support at the Rs 1,08,040–1,07,640 zone and resistance at Rs 1,08,950–1,09,450 zone, while silver has support at Rs 1,24,750–1,23,950 zone and resistance at Rs 1,26,350–1,27,150 zone,” said Rahul Kalantri, vice president of commodities at Mehta Equities.
Investor flows into gold funds reflect the bullish sentiment. India’s gold exchange-traded funds (ETFs) recorded net inflows of $233 million in August 2025, up 67 percent from $139 million in July, according to the World Gold Council.
Global markets are now watching for two key U.S. inflation reports that could set the tone for the Fed’s decision next week and determine whether the rally in precious metals has further room to run. (Source: IANS)
