Mumbai – The demand for gold and silver has surged globally as economic and political uncertainties continue to dominate markets. A weakening U.S. dollar, expectations of potential interest rate cuts, and the enduring appeal of gold as a safe-haven investment have pushed prices to record levels. Domestic investors in India are also contributing to the strong buying trend, with analysts suggesting that prices could rise further in the near term.
Record Levels on Domestic Markets
Gold and silver prices in India reached unprecedented highs, driven by strong global cues and rising spot demand. On the Multi Commodity Exchange (MCX), December gold futures rose ₹2,000, or 1.6%, to touch a record ₹1,31,920 per 10 grams. Silver December futures surged nearly ₹2,000, or 1.2%, reaching a record ₹1,69,676 per kilogram.
Global Trends Fuel Local Buying
Globally, gold is heading toward its best weekly performance since 2008. The surge is attributed to escalating U.S.-China trade tensions and growing expectations of another Federal Reserve rate cut. The U.S. Dollar Index fell 0.20%, making gold cheaper for investors using other currencies and boosting its appeal as a safe investment. Despite rising domestic prices, demand for gold in India remains robust.
Further Price Upside Anticipated
Analysts indicate that fear of further price increases is prompting buyers to purchase more gold. Ongoing concerns over U.S. fiscal conditions and lack of new economic cues are strengthening safe-haven demand, sustaining upward pressure on prices. Traders are closely monitoring any government policy developments, suggesting that gold prices may continue to rise in the near future.
Domestic Prices Up Over 65% This Year
Market experts note that gold’s support levels remain between ₹1,24,500–1,26,000 per 10 grams, with resistance at ₹1,29,000–1,30,000. So far this year, domestic gold prices have risen more than 65%, driven by global uncertainties, heavy central bank purchases, expectations of low U.S. interest rates, and strong investments in gold-backed exchange-traded funds (ETFs).
The combination of global uncertainty and strong domestic demand signals a continuing bullish trend for precious metals in India.
