Gold Silver Price Hike Hits New Records in India

Gold Silver Price Hike: On Monday, prices of gold and silver broke records. It is a big deal for the commodities space. The jump in price is credited to expected interest rate cuts in US, declining dollar, and rising regional tensions. Market participants believe that rates, the tariffs/options, and some pockets of trade tension all play a role in the bullishness of precious metals.

In the global markets, gold topped $3750 per ounce, a record high. They were nearing $3800. While silver increased and broke the $44 per oz price for first time in 14 years.

Indian markets set all-time highs

The global advance along with a muted rupee also led to domestic futures reaching all-time highs in India. On the Multi Commodity Exchange (MCX), gold futures for October were trading just below ₹1.12 lakh for 10 grams. While December silver futures reached a high of ₹1.33 lakh per kilogram. This was the highest amount ever traded in the Indian markets for gold and silver.

Analysts also noted that strong demand for silver in industrial applications has been another catalyst for the rise in silver prices. While gold is seen as a more traditional safe-haven asset, silver prices are closely following gold prices.

Reasons for Gold’s Attractiveness

According to Colin Shah, managing director of Kama Jewelry, the recent rise in gold prices is due to international events. “Geopolitical strife, trade disruptions because of US tariffs, and poor US employment data, have considerably increased gold’s status as a safe-haven investment,” he said.

Another contributing factor is the activity of central banks, said Avinash Gupta, Vice Chairman of the All India Gem & Jewellery Domestic Council. “Trump’s recent actions, especially around H1B visas, have introduced uncertainty into international trade.” So, as a result, central banks are increasing their purchases of gold.
There are two primary factors driving purchases for security and central banks. He concluded that, “Gold may be testing somewhere around the $3,900-$4,000 level.”

Silver Following Gold’s Path

While gold is certainly in the spotlight, silver is close behind. According to analysts, silver’s price rise is driven by industrial demand, particularly in the electronics and renewable energy industries. Gupta said “Silver continues to follow gold and its industrial demand gives it additional support.”

Impacts of US Federal Reserve Strategies

A central factor behind the increase is the Federal Reserve’s dovish stance. Said Saumil Gandhi, Senior Analytical, HDFC Securities, “The Fed suggested the possibility of two interest rate cuts by the end of the year.” Usually, lower interest rates decrease the dollar and treasury yields, which will lead to a greater amount of demand for precious metals.

The market expectations of continued monetary easing, raised the appeal of gold and silver as safe-haven assets in all international economic uncertainty.

Looking Towards the Future

As markets evaluate the Fed’s policy decisions and geopolitical issues of trade, analysts expect both metals to continue their upward trajectory. Gold is on track to reach approximately $3,900‐$4,000 per ounce spending while silver’s future direction remains influenced by both industrial demand and the overall international capital(qneht).

With any increasing degree of uncertainty worldwide, gold and silver remain front and center of trending news today (on the daily financial markets).