Are Gold Prices Reaching New Heights While Silver Hits a 14-Year Peak?
Click to start listening
Synopsis
Discover how gold and silver prices are soaring to record levels amid weakening US dollar and disappointing labor data. This article delves into the factors driving this surge and what it means for investors and the market.
Key Takeaways
- Gold prices reached an all-time high.
- Silver surged to a 14-year peak.
- Weak US dollar bolstered precious metal prices.
- Disappointing US labor market data heightened rate cut expectations.
- Investors await key inflation reports from the US.
New Delhi, Sep 9 (NationPress) Domestic gold and silver prices have soared to unprecedented levels on Tuesday, following a global surge in precious metals driven by the weakened US dollar. This spike comes after disappointing labour market figures in the US heightened expectations for significant Federal Reserve rate cuts.
The price of gold reached an all-time high, while silver hit a remarkable 14-year peak in worldwide markets. On the MCX, gold futures for December delivery rose by Rs 458, or 0.41%, reaching a historic high of Rs 1,10,047 per 10 grams.
In India, the rate for 24-carat gold per gram was reported at Rs 10,804 on Tuesday, according to the India Bullion and Jewellers Association (IBJA).
This surge followed the US non-farm payrolls, which increased by only 22,000 in August, significantly below the anticipated 75,000. Meanwhile, the unemployment rate climbed to 4.3%.
The weaker job statistics have bolstered expectations for a 75-basis-point rate cut by the Fed this year. Contributing to the rally, the dollar index fell to a six-week low, and US 10-year Treasury yields decreased.
Investors in the US are now focusing on two critical inflation reports that could influence the decisions of Federal Reserve policymakers in their upcoming meeting.
Moreover, analysts have attributed the ongoing surge to concerns regarding tariff inflation and rising industrial demand for silver driven by electric vehicles (EVs) and solar energy. Market predictions suggest a 91% probability of a 25-basis-point rate cut at the US Federal Reserve meeting set for September 17.
From a technical perspective, gold has support in the range of Rs 1,08,040–1,07,640 and resistance between Rs 1,08,950–1,09,450. In contrast, silver has support at Rs 1,24,750–1,23,950 and resistance at Rs 1,26,350–1,27,150, according to Rahul Kalantri, VP Commodities at Mehta Equities Ltd.
Additionally, India's gold exchange-traded funds (ETFs) experienced net inflows of $233 million in August 2025, representing a 67% increase from the $139 million recorded in July, as per data from the World Gold Council.
Point of View
It's crucial to recognize the interplay between economic indicators and market movements. The surge in gold and silver prices reflects investor sentiment amidst uncertain economic conditions. This trend warrants close monitoring as it influences both individual investors and the broader economy.
NationPress
09/09/2025
Frequently Asked Questions
What factors are influencing the rise in gold and silver prices?
The rise in gold and silver prices is primarily driven by a weakened US dollar and disappointing labor market data, which have reinforced expectations for aggressive Federal Reserve rate cuts.
What are the current prices of gold and silver in India?
As of September 9, 2023, the price of 24-carat gold is Rs 10,804 per gram, while gold futures for December delivery have reached Rs 1,10,047 per 10 grams.
When is the next Federal Reserve meeting?
The next Federal Reserve meeting is scheduled for September 17, 2023, where key decisions regarding rate cuts will be discussed.
How does the labor market data impact gold and silver prices?
Disappointing labor market data, such as lower-than-expected job growth, often leads to increased demand for gold and silver as safe-haven assets, pushing their prices higher.
What is the outlook for gold and silver prices?
Analysts predict continued volatility in gold and silver prices, driven by economic indicators and market sentiment regarding inflation and Federal Reserve monetary policy.
