Why are Gold and Silver Prices Soaring to New Heights?
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Synopsis
Gold and silver prices have soared to unprecedented levels, driven by geopolitical tensions and tariff uncertainties. With both precious metals achieving all-time highs, investors are keenly observing market movements as key economic data approaches.
Key Takeaways
- 24-carat gold reaches Rs 1,08,037 per 10 grams.
- Silver hits a record Rs 1,24,413 per kilogram.
- Geopolitical tensions contribute to price increases.
- Expectations of a Fed rate cut bolster demand.
- Upcoming US CPI data to impact market trends.
New Delhi, Sep 8 (NationPress) The prices of gold and silver experienced a remarkable rise on Monday, reaching new all-time highs due to prevailing geopolitical tensions, particularly related to ongoing US tariff issues. According to the India Bullion and Jewellers Association (IBJA), the cost of 24-carat gold saw an increase of Rs 1,699, now priced at Rs 1,08,037 per 10 grams, compared to the previous rate of Rs 1,06,338.
In addition, the price of 22-carat gold climbed to Rs 98,962 per 10 grams, up from Rs 97,406, while 18-carat gold advanced to Rs 81,028, up from Rs 79,754 per 10 grams.
Silver also saw a significant jump, increasing by Rs 1,243 to a record Rs 1,24,413 per kilogram, compared to the earlier price of Rs 1,23,170.
These precious metals reflected a similar upward trend in the futures market. On the Multi Commodity Exchange (MCX), the gold contract set to expire on October 3 was trading 0.39 percent higher at Rs 1,08,147, while the December 5 silver contract rose 0.70 percent to Rs 1,25,569.
In the global market, gold also registered substantial gains, with prices on Comex climbing 0.20 percent to $3,660.42 per ounce, while silver increased 0.87 percent to $41.915 per ounce.
“Gold received positive signals, gaining $28 at $3615 on COMEX and Rs 300 at Rs 1,08,000 on MCX, following last week’s weak Non-Farm Payrolls data, which bolstered expectations of a Fed rate cut in the forthcoming meeting,” noted Jateen Trivedi from LKP Securities.
He added that uncertainties related to tariffs, combined with strong expectations of interest rate cuts, continue to offer robust support to gold.
This week, the US CPI and Core CPI data are anticipated to play a crucial role in guiding market trends and volatility. Key support for gold is identified at $3,560/Rs 1,06,500, while resistance levels are at $3,650/Rs 1,09,500, Trivedi concluded.
Point of View
I recognize the significant implications of the recent surge in gold and silver prices for investors and the economy. The intersection of geopolitical tensions and tariff uncertainties has created an environment ripe for volatility, necessitating awareness of market dynamics.
NationPress
08/11/2025
Frequently Asked Questions
What caused the surge in gold and silver prices?
The surge in prices is attributed to geopolitical uncertainties and ongoing US tariff concerns.
What are the current prices for gold and silver?
As of September 8, 24-carat gold is priced at Rs 1,08,037 per 10 grams, while silver is at Rs 1,24,413 per kilogram.
How are future markets reacting?
Future markets reflect a similar positive trend, with gold and silver contracts showing gains.
What should investors watch for this week?
Investors should pay attention to US CPI and Core CPI data, as they may significantly influence market trends.
Is there an expectation for a Fed rate cut?
Yes, recent economic data has strengthened expectations for a potential Fed rate cut in the upcoming meeting.
