Gold broke all records, price crossed 1.16 lakh, silver also saw a sharp rise

Business News: Gold prices in the national capital rose by Rs 2,200 to a new high of Rs 1,16,200 per 10 grams on Monday, buoyed by strong global cues. Investors await key comments from US Federal Reserve officials for policy direction. According to the All India Sarafa Association, the price of gold with 99.9 per cent purity had closed at Rs 1,14,000 per 10 grams on Friday. In the local bullion market, gold with 99.5 per cent purity rose by Rs 2,150 to a record high of Rs 1,15,650 per 10 grams (inclusive of all taxes ) . It had closed at Rs 1,13,500 per 10 grams in the previous market session.

Gold prices on record labels

"Both gold and silver are trading at record levels in the domestic market, in line with the bullish trend in international markets," said Saumil Gandhi, Senior Analyst (Commodities) , HDFC Securities . The US Federal Reserve's dovish stance suggests two more interest rate cuts are likely by the end of this year, which could limit the upside in the US dollar and bond yields, while boosting precious metal prices.

Gandhi added that strong inflows into exchange- traded funds and continued interest from central banks have also contributed to the rise in bullion prices. Precious metal prices have risen by ₹37,250 per 10 grams, or 47.18 percent , in the current calendar year , from ₹78,950 per 10 grams on December 31, 2024.

Record rise in silver too

Meanwhile, silver prices rose by ₹4,380 to an all-time high of ₹1,36,380 per kg (inclusive of all taxes ) on Monday. According to the association, silver had closed at ₹1,32,000 per kg on Friday . So far this year, silver prices have risen by ₹46,680 per kg, or 52.04 percent , from ₹89,700 per kg on December 31, 2024. Globally, spot gold rose more than 1 percent to a record high of $3,728.43 per ounce . " Investors are awaiting comments from several Federal Open Market Committee ( FOMC ) officials later in the day and a key speech by Federal Reserve Chairman Jerome Powell on Tuesday to take cues about future direction," said Kaynat Chainwala , AVP , Commodity Research, Kotak Securities .