Post by : Badri Ariffin

On Tuesday, gold prices witnessed another significant increase, achieving a new all-time high in Delhi, primarily fueled by strong international market trends, as reported by the All India Sarafa Association.

Gold with 99.9% purity surged by ₹2,650, reaching a landmark price of ₹1,40,850 per 10 grams, up from the previous closure of ₹1,38,200.

So far in 2025, gold has gained ₹61,900, representing a remarkable rise of approximately 78.4% from ₹78,950 per 10 grams noted on December 31, 2024. This ongoing rally underscores the increasing preference for gold as a safe-haven asset amidst global uncertainties.

Similarly, silver prices have also continued their upward trend, climbing ₹2,750 to reach a historic high of ₹2,17,250 per kilogram, taxes included. It closed at ₹2,14,500 per kg on Monday, previously observing a substantial gain of ₹10,400 in one day.

This year, silver has proven even more lucrative, rising by ₹1,27,550, or around 142.2%, from ₹89,700 per kilogram at the close of 2024.

Market analysts attribute this bullish trend to anticipated shifts in US monetary policy and escalating geopolitical strains.

According to some experts, global investors are now increasingly considering the potential for multiple interest rate cuts by the US Federal Reserve in 2026, which tends to lessen the opportunity cost of holding non-yielding assets like gold and silver.

In the international markets, spot gold rose by USD 54.3, or 1.22%, reaching a record high of USD 4,498 per ounce on Tuesday. To date, spot gold has increased by USD 1,892.23, or over 72.6%, compared to USD 2,605.77 per ounce at the end of last year.

Silver also achieved a new milestone abroad, climbing 1.4% to surpass the USD 70-per-ounce threshold for the first instance. For 2025, spot silver prices are up by USD 41.03, approximately 141.6%, from USD 28.97 per ounce.

In addition to rate cut expectations, a weaker US dollar and ongoing geopolitical concerns are contributing to the rally in precious metals.

In the coming weeks, market participants are advised to monitor forthcoming US macroeconomic data, particularly the revised third-quarter GDP figures, which could offer critical insights into the US economy's health and inform views on the Federal Reserve's monetary policy direction.

Currently, robust global signals and a steady demand from investors indicate that gold and silver might retain their strong positioning in the near future.

#Global News