Why Are Gold and Silver Prices Surging Amid Global Uncertainties?
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Synopsis
Gold and silver prices have surged dramatically, with gold rising by Rs 2,000 and silver by Rs 5,000. This unprecedented increase is largely driven by geopolitical tensions and economic forecasts suggesting potential Federal Reserve rate cuts. Discover the factors behind this surge and what it means for investors.
Key Takeaways
- Gold price rose by Rs 2,000.
- Silver price increased by Rs 5,000.
- Geopolitical tensions are driving bullion buying.
- Federal Reserve rate cut expectations are influencing market trends.
- Both metals reached significant highs in the domestic and international markets.
New Delhi, Sep 1 (NationPress) On Monday, both gold and silver experienced a remarkable surge, building on the momentum from the previous week amid a backdrop of global uncertainty in geopolitical affairs. The yellow metal surged by Rs 2,000, while silver soared by Rs 5,000.
As reported by the Indian Bullion Jewellers Association (IBJA), the price of 24-carat gold concluded at Rs 104,493 per 10 grams, marking an increase of Rs 2,105 from the previous day's closing of Rs 102,388. Simultaneously, silver finished at Rs 122,800 per kg, reflecting a rise of Rs 5,228 compared to the last session's close of Rs 117,572.
In parallel, the rates for 22-carat gold climbed to Rs 95,716 per 10 grams, while the 18-carat gold price settled at Rs 78,370 per 10 grams.
Sandip Raichura, the CEO of Retail Broking and Distribution & Director at PL Capital, expressed, "We have maintained a bullish outlook on gold for over two years, driven by the weakening of the DXY and the strengthening de-dollarisation trend, especially after the current US President took office."
N.S. Ramaswamy, Head of the Commodity Desk and CRM at Ventura, noted that expectations surrounding a Federal Reserve rate cut on September 16-17 have intensified following the US PCE data release, which aligned with forecasts.
Moreover, the gold price also rose in the domestic futures market. As of 6:22 PM, the MCX future contract expiring on October 3 traded at Rs 1,04,734.0 per 10 grams, reflecting an increase of 0.88%.
In the international market, the yellow metal mirrored this upward trend. Comex gold was priced at $3,540.2, up by $24 or 0.69%.
Manav Modi of Motilal Oswal Financial Services Ltd stated, "Gold reached an all-time high on Comex, while silver also achieved record levels domestically, marking its highest since 2011 in COMEX due to safe-haven buying. The increasing rate cut expectations, coupled with rising tensions between Israel and Gaza and other geopolitical strains, continue to bolster bullion buying."
Point of View
It is essential to recognize the impact of fluctuating gold and silver prices on the economy. The current geopolitical tensions and economic predictions are significant indicators for investors. With a focus on national interests, we must remain vigilant and informed, ensuring our readers understand the implications of these market shifts.
NationPress
03/09/2025
Frequently Asked Questions
What caused the rise in gold and silver prices?
The surge in gold and silver prices is primarily attributed to geopolitical uncertainties and expectations of a Federal Reserve rate cut.
How much did gold and silver prices increase?
Gold prices increased by Rs 2,000, while silver prices jumped by Rs 5,000.
What is the current price of 24-carat gold?
The current price of 24-carat gold is Rs 104,493 per 10 grams.
Are there any predictions for further price increases?
Given the current geopolitical tensions and economic forecasts, analysts suggest that prices may continue to rise.
Where can I find more information on precious metals pricing?
You can follow financial news platforms and commodity trading websites for the latest updates and analyses on precious metals.
