In a significant development in the bullion market, gold prices surged by ₹580 on Monday, reaching a record ₹97,030 per 10 grams in the national capital, Delhi. Silver prices also witnessed a notable climb, gaining ₹500 to settle at ₹1,17,000 per kilogram. The sharp rise in precious metal prices comes amid heightened global economic uncertainty, firm international cues, and sustained investor interest.
According to industry analysts, the upward movement in gold and silver prices is being driven by multiple factors, including rising geopolitical tensions, expectations of a prolonged high-interest rate environment by major central banks, and continued demand from both retail and institutional investors.
Gold Rallies on Global Cues
“Spot gold prices (24 carats) in Delhi surged by ₹580 to ₹97,030 per 10 grams, reflecting strong overseas trends and consistent domestic demand,” said Saumil Gandhi, Senior Analyst at HDFC Securities. In the global market, gold traded higher at $2,435.50 per ounce, buoyed by a weaker U.S. dollar and renewed demand for safe-haven assets. Market experts noted that investors are increasingly turning to gold as a hedge against inflation and financial instability, especially amid concerns over sluggish economic recovery in key economies.
The recent rise in gold prices also aligns with increased central bank purchases, particularly in emerging markets. China’s central bank has been actively accumulating gold reserves in an effort to diversify its foreign exchange holdings, which has further added to the upward momentum.
Silver Follows Suit, Climbs to All-Time High
Silver also witnessed a robust rally, with prices jumping by ₹500 to touch ₹1,17,000 per kilogram in Delhi markets. On the international front, silver prices rose to $31.85 per ounce, supported by both industrial and investment demand. The surge comes at a time when industrial applications of silver—particularly in electronics and renewable energy sectors—are seeing accelerated growth.
“Silver is currently benefiting from a dual narrative of being both an industrial metal and a precious metal. Its strong demand in green technologies like solar panels, combined with safe-haven buying, is propelling prices upward,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Investor Sentiment and Outlook
Bullion traders report a steady inflow of investment into gold and silver-backed exchange-traded funds (ETFs), further supporting prices. Additionally, festive and wedding season demand in India is likely to provide continued support to physical buying, although high prices may trigger some caution among retail consumers.
Experts believe that as long as macroeconomic uncertainty persists and real interest rates remain subdued, both gold and silver will continue to find favor among investors. With gold approaching the ₹1 lakh mark and silver hitting record highs, investors and consumers alike are closely monitoring further price movements.
