Gold prices surge to record high amid safe haven demand

Gold surged past Rs 1.10 lakh per 10 gm in India amid safe-haven demand, global tensions, and Fed rate cut expectations, with silver and ETFs also showing sharp gains in August.

New Delhi: Gold prices touched a record high on Tuesday, surpassing the Rs 1,10,000 mark due to increased safe-haven demand amid global geopolitical tensions and anticipation of a US Federal Reserve rate cut this week.

In India, the price of 24-carat gold per gram stood at Rs 10,951 as of 10.17 a.m., according to data from the India Bullion and Jewellers Association (IBJA).

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Earlier in the day, prices hit Rs 1,10,650 per 10 gm, up from Rs 1,09,820 on Monday. Spot gold was priced at $3,679 an ounce, just below Monday’s record of $3,685, according to World Gold Council data.

Market experts attributed the rally to heightened geopolitical risks in global trade and expectations of a US Fed rate cut on September 17. With support from a weakening dollar, they expect gold and silver to trade positively through the week.

Gold prices in major domestic markets were: Rs 1,10,260 per 10 gm 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 price at Rs 1,10,770.

Silver prices also climbed, with October 5 futures on MCX trading at Rs 1,29,452 per kg. Analysts linked the surge to industrial demand from electric vehicles and solar sectors.

Market forecasts indicate a 96.4 per cent likelihood of a 25-basis-point rate cut at the upcoming US Federal Reserve meeting on September 17.

India’s gold exchange-traded funds (ETFs) recorded net inflows of $233 million in August 2025, a 67 per cent jump from $139 million in July, as per World Gold Council data.

In the August inflation print, gold remained a major driver of core inflation, with a 40 per cent year-on-year increase adding nearly 43 basis points to the CPI.