GOLD PRICES HIT RECORD HIGH

New Delhi, Sep 16, 2025 : Gold prices surged to a fresh record high on Tuesday, crossing the Rs.1,10,000 mark, as heightened safe-haven demand and anticipation of a US Federal Reserve rate cut boosted the yellow metal.

According to the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold stood at Rs.10,951 per gram as of 10:17 am. Earlier in the day, gold touched Rs.1,10,650 per 10 grams, up from ?1,09,820 on Monday.

In global markets, spot gold was priced at $3,679 per ounce, just shy of Monday’s all-time high of $3,685, World Gold Council data showed.

Market analysts attributed the rally to rising geopolitical tensions, expectations of a US Fed rate cut on September 17, and a weakening US dollar. They expect gold and silver to continue trading with a positive bias this week.

City-wise gold prices are as follows: New Delhi: Rs.1,10,260 per 10 gm; Mumbai: Rs.1,10,450; Bengaluru: Rs.1,10,540; Kolkata: Rs.1,10,310; and Chennai: Rs.1,10,770 (highest among metros).

Silver prices also moved higher, with October 5 futures on MCX trading at Rs.1,29,452 per kg. Analysts noted that the rally in silver is partly driven by growing industrial demand, particularly from the electric vehicle and solar sectors.

India’s gold exchange-traded funds (ETFs) recorded net inflows of $233 million in August 2025, a 67% jump from $139 million in July, according to World Gold Council data.

Meanwhile, gold’s sharp rise continues to weigh on inflation. In the latest August CPI print, gold’s 40% year-on-year price surge contributed nearly 43 basis points to core inflation.