Gold and silver soar to record highs this week amid global uncertainty

Gold and silver prices continued their record-breaking rally during this week, reaching new lifetime highs while uncertainties in the world, such as US tariff issues and rising geopolitical tensions, sustained safe-haven demand.

IBJA data revealed that 24-carat gold settled at ₹1,09,707 per 10 grams on Friday, a sharp gain of ₹1,670 from Monday's close of ₹1,08,037. The yellow metal has been trading above the ₹1 lakh mark consistently through September, from ₹1,04,075 on September 1.

Prices of 22-carat gold also rose, settling for the week at ₹1,00,492 per 10 grams from ₹98,962 at the beginning of the week.

Silver marched in tandem, settling at ₹1,28,008 per kilogram on Friday, up by ₹3,595 from Monday's ₹1,24,413. The white metal has remained comfortably above ₹1.20 lakh per kg this month, a sign of firm investor demand.

On the futures front, gold futures maturing on October 3 closed at ₹1,09,356 per 10 grams, up 0.34 percent, indicating renewed optimism among bullion traders.

The global environment further supported the upmove. Globally, Comex gold hovered at $3,680.7 per ounce as investors took shelter with more economic and political uncertainties.

Market analysts are of the view that the bullish trend can be sustained in the near term underpinned by ongoing geopolitical tensions, poor global growth expectations, and tariff-related anxiety. The spurt also consolidates bullion as an attractive hedge against volatility for Indian investors.

"Gold stayed positive with gains of 0.35 per cent at Rs 1,09,350 as Comex traded firm at $3647, factoring in expectations of a Fed rate cut next week to support the US economy," said Jateen Trivedi of LKP Securities.

Despite going into overbought conditions, gold still fetches a premium thanks to tariff worries and the larger de-dollarisation trend. With US inflation numbers and unemployment claims due later this week, markets are pricing ever more aggressively a 0.50 percent rate cut in conjunction with a dovish tone from the Fed. Gold prices should stay strong around ₹1,07,000–₹1,12,000, opines Trivedi.