NEW DELHI— Gold surged to a record high on Tuesday, crossing the Rs 1,10,000 mark, as investors flocked to safe-haven assets amid global geopolitical tensions and growing expectations of a U.S. Federal Reserve rate cut this week.
In India, 24-carat gold was priced at Rs 10,951 per gram as of 10:17 a.m., according to the India Bullion and Jewellers Association (IBJA). Earlier in the day, prices climbed as high as Rs 1,10,650 per 10 grams, up from Rs 1,09,820 on Monday.
On the global market, spot gold was at $3,679 an ounce, just below Monday’s record of $3,685, World Gold Council data showed.
Analysts attributed the rally to heightened geopolitical risks and expectations of monetary easing in the U.S. “With the dollar weakening and the likelihood of a Fed rate cut, gold and silver are expected to trade strong through the week,” market experts said.
Domestic prices reflected the surge: gold traded at Rs 1,10,260 per 10 grams in New Delhi, Rs 1,10,450 in Mumbai, Rs 1,10,540 in Bengaluru, and Rs 1,10,310 in Kolkata. Chennai reported the highest level at Rs 1,10,770.
Silver also joined the rally, with October 5 futures on the Multi Commodity Exchange (MCX) trading at Rs 1,29,452 per kilogram. Analysts noted that silver’s momentum is further supported by rising industrial demand, particularly from electric vehicles and solar power.
Market forecasts indicate a 96.4 percent probability of a 25-basis-point cut at the Fed’s September 17 meeting.
Investor appetite for gold remained robust, with India’s gold exchange-traded funds (ETFs) recording net inflows of $233 million in August 2025 — a 67 percent jump from $139 million in July, according to the World Gold Council.
The metal’s surge has also influenced inflation readings. In the August print, gold’s 40 percent year-over-year price increase added nearly 43 basis points to India’s consumer price index (CPI), keeping core inflation elevated. (Source: IANS)
