Gold rates have seen a steep rise of over ₹6,000 per 10 grams over the last month in India's retail and futures markets, propelled by increased geopolitical tensions.
The situation in Ukraine and Gaza as well as trade-related tensions induced by American President Donald Trump's tariff actions against nations like India, Brazil, and Russia have contributed to the worldwide uncertainty that has spawned the increase.
On Friday, October gold futures on the Multi-Commodity Exchange (MCX) reached an all-time high of ₹1,07,740 for 10 grams, up by almost ₹6,500 in just a month.
In the physical market, 24-carat gold was traded at ₹1,06,338 per 10 grams, down from ₹1,00,076 on August 5, an increase of ₹6,262, said the Indian Bullion and Jewellers Association (IBJA).
In this week alone, prices of gold rose by ₹1,845 for 24-carat purity. Gold has risen by ₹6,715 since August 18 when the price was ₹99,623 for every 10 grams, IBJA data indicates.
Silver has also entered the rally, posting new lifetime highs. On September 4, silver touched ₹1,23,207 per kg before slightly declining to close at ₹1,23,170 on Friday—still ₹10,748 higher than ₹1,12,422 per kg on August 5. In the last week, the metal has appreciated by ₹370 from Monday's ₹1,22,800 levels.
Both gold and silver continued their record-breaking run this week in domestic as well as global markets.
As per IBJA's September 4 evening rates, 24-carat gold rose from ₹1,04,424 per 10 grams on Tuesday to ₹1,06,021 the next day—a one-day rise of ₹1,597.
Analysts credit the prolonged rally in precious metals to strong central bank demand, ongoing geopolitical tensions, and safe-haven demand. Even through fits of profit-taking before major U.S. economic data releases, gold and silver prices have remained steady, which signals ongoing investor demand in times of global uncertainty.
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