New Delhi: Gold prices breached the Rs 1.11 lakh per 10 grams mark by jumping Rs 799 in the domestic futures market on Monday, tracking strong global cues. Investors are closely watching key US inflation data and comments from several Federal Reserve officials this week for further policy guidance.
On the Multi Commodity Exchange (MCX), gold futures for December delivery climbed Rs 799, or 0.72 per cent, to hit a record high of Rs 1,11,750 per 10 grams. Meanwhile, the most traded precious metal futures for October delivery appreciated Rs 761, or 0.69 per cent, to Rs 1,10,608 per 10 grams. Last week, gold had surged to a fresh peak of Rs 1,10,666 per 10 grams.
Silver also witnessed significant gains, hitting record peaks. The white metal futures for March next year delivery rallied Rs 2,446, or 1.86 per cent, to reach an all-time high of Rs 1,33,582 per kilogram. Similarly, the most traded silver futures for December delivery surged by Rs 2,473, or 1.9 per cent, to a fresh peak of Rs 1,32,311 per kilogram on the MCX.
Traders attributed the rise in bullion prices to weakness in the rupee and subdued sentiment in the domestic equity markets, which further supported the upward trend.
On the global front, gold futures increased by USD 26.82, or 0.72 per cent, to USD 3,732.62 per ounce. Last week, it had risen to hit a lifetime high of USD 3,744 per ounce.
“Gold prices edged up to hover near record levels as investors looked ahead to key US inflation data and comments from several Federal Reserve officials this week for further policy guidance,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Last week, the US Federal Reserve delivered its first rate cut of the year and signaled further reductions ahead, citing a weakening labour market. “Markets currently imply two more reductions this year, one in October and another in December, with expectations of continued monetary policy easing providing a major boost to bullion’s 40 per cent surge so far this year,” Trivedi added.
Gold has also been supported by safe-haven demand amid ongoing geopolitical tensions and concerns over the economic impact of President Donald Trump’s tariffs, alongside robust central bank buying and sustained ETF inflows.
Meanwhile, silver futures for December delivery were trading 2.17 per cent higher at USD 43.88 per ounce. “Silver has been carving out a more aggressive trajectory than gold, driven by investment flows, solar panel demand, and industrial use in electric vehicles, 5G infrastructure, and battery storage,” said Riya Singh, Research Analyst, Commodities and Currency, Emkay Global Financial Services.
Supply growth for silver has been muted, leaving the market vulnerable to disruptions, she added.
Pranav Mer, Vice President, EBG – Commodity & Currency Research at JM Financial Services, projected that silver prices in the domestic market have upside potential to test Rs 1,40,000-1,50,000 per kilogram on the commodities bourse.
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