Gold Surges Rs 3,040 To Rs 1.33 Lakh/10g Amid Strong Global Cues, Weak US Dollar
The precious metal of 99.5% purity zoomed by Rs 3,040 to Rs 1,32,600 per 10 grams (inclusive of all taxes).
Gold prices surged by Rs 3,040 to Rs 1,33,200 per 10 grams in the national capital on Monday, tracking strong global trends and a weak US dollar, according to the All India Sarafa Association.
Analysts said sustained jewellery demand amid the ongoing wedding season supported the precious metal.
The precious metal of 99.5% purity zoomed by Rs 3,040 to Rs 1,32,600 per 10 grams (inclusive of all taxes).
Gold is now inching closer to its all-time high of Rs 1,34,800 per 10 grams (99.9% purity) and Rs 1,34,200 per 10 grams (99.5%), respectively, traders said.
"Gold extended last week's rally, supported by a softer US dollar, growing expectations of a Federal Reserve rate cut next week, upbeat forecasts from major banks, and continued robust central bank buying, all of which are helping drive the market higher," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.
Silver continued its upward march for the fifth straight day, surging by Rs 5,800 to Rs 1,77,000 per kilogram (inclusive of all taxes), as per the association.
In the international market, spot gold rose by $42.29, or 1%, to $4,261.52 per ounce, as the dollar index was quoting 0.19% lower at 99.27, lending support to bullion prices.
"Spot gold held its gains and trades above $4,230 per ounce ahead of US manufacturing PMI, ADP employment, services PMI and the core PCE index, alongside speeches from Federal Reserve officials and the Fed Chair Jerome Powell's remarks later in the day," Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said.
She added that prospects of Kevin Hassett, who is widely viewed as favouring lower rates, emerging as a frontrunner to replace Fed Chair Powell may reinforce rate-cut bets if US economic indicators soften further.
Since the beginning of the year, the yellow metal has surged by $1,656.57, or 63.6%, from $2,605.77 per ounce on Dec.31, 2024.
Rising for the sixth straight day, spot silver gained 2%to hit a fresh record of $57.85 per ounce in the global markets. The metal jumped 15.7% over the past week and has doubled so far in 2025, rallying 100 per cent from $28.97 per ounce on Dec. 31, 2024.
Silver's price has nearly doubled in just 11 months and risen more than gold, even though gold was the most popular commodity in 2025.
"Over the past 12 months, silver has climbed significantly higher than gold, rising 100%in 2025, whereas gold has only increased by 60%," Renisha Chainani, Head - Research at Augmont, said.
She further stated that it is anticipated that the economy would continue to slow down until 2026 and that the Federal Reserve will probably drop interest rates, which is attracting some investors back.
Chainani explained that in the face of growing supply concerns and rising prospects of additional rate cuts by the Federal Reserve, silver continued to rise, approaching a record $58. Due to a short squeeze, silver's increase this year surprised a lot of investors.
"The 2025 silver bubble, in contrast to previous investment waves, was dependent on a combination of low supply, high Indian demand, industrial demand, and tariffs," she said.
