Gold, silver prices hit all-time highs today on US tariff woes, Fed rate cut hopes

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Gold and silver prices rose to fresh highs today, driven by a bullish sentiment in the overseas market and festive demand at home.

Representational image of stacked gold bars.(HT)

Gold futures for the October contract surged 2.03%, or ₹2,113, to hit an all ₹1,05,937/10 gm in morning trade. Similarly, Gold futures for the December contract jumped 1.6%, or ₹1,682/10 gm, to a record high of ₹1,06,529/10 gm on the MCX. The silver futures for the December contract rallied 2.13%, or ₹2,597, to an all-time high of ₹1,24,470/kg.

You can check real-time gold prices and silver prices here.

Why gold, silver prices hit an all-time high today

“Gold marked an all-time high…amid the tariff escalations, which are continuously supporting buying in bullion,” Manav Modi, analyst (precious metal research) at Motilal Oswal Financial Services Ltd., told the Press Trust of India. Additionally, traders are expecting an interest rate cut by the US Federal Reserve this month.

An increase in festive and wedding demand and buying by the People’s Bank of China are some of the other factors supporting the bullion’s bull run. The US tariffs on India have forced investors to seek refuge in save-haven assets.

Additionally, “the Indian rupee has weakened significantly against the dollar, hitting an all-time low, which further drove up local bullion prices,” Rahul Kalantri, vice president (commodities) at Mehta Equities told PTI. Continued weakness in the US dollar is also lending support to the silver prices.

Overseas cues for gold, silver prices

Silver surged above $40 an ounce for the first time since 2011, while gold rose closer to an all-time high as optimism grew for an interest-rate cut by the US Federal Reserve this month.

Spot silver rose as much as 2.1% to $40.5391 an ounce —taking gains this year to about 40%—while gold jumped 1.1% to trade just below its April record above $3,500 an ounce, according to Bloomberg. Palladium and platinum also rose to the highest in a week.

The rallies were fueled by expectations that the US Fed will reduce interest rates when officials gather for their next meeting later in September, with a key US jobs report this Friday likely to add to signs of an increasingly subdued labour market—supporting the case for cuts.

“Gold and silver have suddenly sprung to life as both fundamentals and technicals aligned,” said Saxo Capital Markets Pte. strategist Charu Chanana, adding that worries about the Fed’s future underpinned the gains. “On top of that, key resistance levels around $3,450 for gold and $40 for silver were breached, triggering momentum buying.”

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