SRINAGAR: Gold prices in the national capital soared by Rs 3,040 to Rs 1,33,200 per 10 grams on Monday, driven by robust global trends and a weakening US dollar, according to the All India Sarafa Association. The sharp rise places the metal within striking distance of its all-time high.
The association said gold of 99.5 per cent purity also climbed by Rs 3,040 to Rs 1,32,600 per 10 grams, inclusive of all taxes, as steady jewellery demand during the peak wedding season added momentum. Traders noted that gold is now nearing its record levels of Rs 1,34,800 (99.9 per cent purity) and Rs 1,34,200 (99.5 per cent purity).
Analysts attributed the surge to expectations of an imminent US Federal Reserve rate cut, a softening dollar, upbeat forecasts from major global banks, and continued strong buying by central banks. “Gold extended last week’s rally, supported by a softer US dollar, growing expectations of a Federal Reserve rate cut next week, upbeat forecasts, and robust central bank buying,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.
Silver also maintained its upward trajectory for the fifth consecutive session, rising by Rs 5,800 to Rs 1,77,000 per kilogram.
In international markets, spot gold advanced by USD 42.29, or 1 per cent, to USD 4,261.52 per ounce, supported by a 0.19 per cent dip in the dollar index to 99.27. Analysts said the metal held firm ahead of key US data releases, including manufacturing PMI, ADP employment, services PMI and the core PCE index, along with speeches from Federal Reserve officials. “Spot gold trades above USD 4,230 per ounce as markets await remarks from Fed Chair Jerome Powell,” said Kaynat Chainwala, AVP – Commodity Research at Kotak Securities.
Chainwala added that speculation around Kevin Hassett emerging as the frontrunner to replace Powell—given his reputation for favouring lower interest rates—could further strengthen rate-cut expectations if US economic indicators soften.
Gold has surged by 63.6 per cent so far this year, rising by USD 1,656.57 from USD 2,605.77 per ounce at the end of 2024.
Silver continued its blistering rally, hitting a fresh global record of USD 57.85 per ounce after gaining 2 per cent on Monday. Prices have jumped 15.7 per cent in the past week alone and have doubled in 2025, up from USD 28.97 per ounce on 31 December 2024.
“Silver’s price has nearly doubled in 11 months and risen more than gold, even though gold was the most popular commodity in 2025,” said Renisha Chainani, Head – Research at Augmont. She said slowing economic momentum and the likelihood of further Fed rate cuts were drawing investors back into precious metals.
Chainani noted that silver’s rally has been fuelled by tightening supply, strong Indian and industrial demand, tariff impacts, and a short squeeze that caught many investors off guard. “The 2025 silver bubble, unlike previous investment waves, has been driven by a combination of low supply, high Indian demand, industrial demand and tariffs,” she added.
