Gold glitters at Rs 1.06 lakh, silver shines at new peak as investors seek safety

Gold prices in India hit a record high on Tuesday, September 2, with 24-karat gold trading at Rs 1.06 lakh per 10 grams, 22-karat at Rs 97,250 per 10 grams, and 18-karat at Rs 79,570 per 10 grams, according to Goodreturns. The 24-karat rate set a fresh all-time high, marking the eighth consecutive session of gains in the domestic market.

This rally mirrors a historic surge in global markets, where spot gold crossed the $3,500 per ounce mark for the first time. Prices touched $3,508.50 an ounce before easing to around $3,496 in early trade, while U.S. gold futures for December delivery climbed 1.4% to $3,565.50 an ounce, Reuters reported.

Gold and silver markets in India witnessed another dramatic surge on Tuesday, with prices inching toward record-breaking levels as investors flocked to safe-haven assets amid global uncertainty. The rally was fueled by a mix of factors ranging from expectations of a U.S. Federal Reserve rate cut to mounting geopolitical tensions and festive season demand in India.

Internationally, the momentum was even more striking: gold scaled a fresh all-time peak of $3,578.40 an ounce. Silver, too, extended its winning streak for the fifth consecutive session. The December futures contract rose Rs 588 to hit Rs 1,25,249 per kilogram—a new milestone backed by robust physical demand and optimism that the U.S. central bank will ease borrowing costs.

Market watchers noted that both metals had closed Monday on a positive note, with gold settling at ₹1,04,785 per 10 grams and silver maintaining strength. Analysts attributed the upward march to a combination of macroeconomic drivers and investor psychology.

“Gold and silver have reached historic highs, largely on expectations that the Federal Reserve may trim interest rates soon, coupled with heightened geopolitical concerns,” explained Rahul Kalantri, Vice President of Commodities at Mehta Equities. He added that in the Indian market, gold currently has strong support between Rs 1,03,000–Rs 1,04,000 per 10 grams, while resistance lies in the Rs 1,05,000–Rs 1,06,000 range.

A weaker U.S. dollar has added further fuel to the rally. “Markets are widely pricing in a 25 basis point rate cut in September, and that outlook continues to support bullion,” observed analysts at Axis Securities. Manav Modi, an analyst at Motilal Oswal Financial Services, echoed similar views, noting that safe-haven demand is flourishing against the backdrop of geopolitical unrest, tariff disputes, and uncertainty over the direction of U.S. monetary policy.

The bullish trend has not gone unnoticed among domestic investors. Manoj Kumar Jain, Head of Commodity Research at Prithivifinmart, said, “Gold and silver extended their gains to hit fresh highs, but the trend remains volatile. Safe-haven buying and fluctuations in the dollar index are key triggers.” He forecast that in the short term, gold could test Rs 1,07,000 while silver may climb toward Rs 1,27,000. For traders, he recommended a strategy of buying on dips with those targets in mind.

Technical charts support this outlook. On MCX, gold has immediate support at Rs 1,03,650–Rs 1,04,220 and resistance at Rs 1,05,200–Rs 1,05,850. Silver, meanwhile, is seen holding firm above Rs 1,22,000, with resistance building between Rs 1,25,850–Rs 1,27,000.

Beyond technicals, seasonal factors may also shape price movements. With the onset of India’s festive and wedding season, physical demand for bullion is expected to stay strong. “Seasonal buying will cushion any downside in domestic markets,” noted Mohit Kamboj, former president of the India Bullion and Jewellers Association.

Global investors now await the U.S. non-farm payroll report due Friday, a critical data point that could influence the Fed’s policy stance later this month. Until then, the mood in bullion markets remains unmistakably bullish, with both gold and silver shimmering near uncharted territory.