The surge follows a historic run 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 trading around $3,496 per ounce in early trade, while US gold futures for December delivery jumped 1.4% to $3,565.50 an ounce, as per Reuters report.Analysts link the rally to a weaker US dollar, heightened expectations of a Federal Reserve rate cut in September, and sustained central bank purchases. Safe-haven demand amid geopolitical uncertainty and steady inflows into precious metal ETFs are also keeping gold elevated.
“Gold and silver prices have reached historic highs, primarily influenced by growing expectations of a Federal Reserve interest rate reduction and intensifying geopolitical tensions,” said Rahul Kalantri, VP Commodities, Mehta Equities.He added that in India, gold has support at ₹1.04 lakh–₹1.03 lakh per 10 grams and resistance at ₹1.05 lakh –₹1.06 lakh per 10 grams.
Darshan Desai, CEO of Aspect Bullion & Refinery, said, “Steady inflows into precious metal ETFs and sustained central bank purchases are helping prevent any significant downward correction. Notably, central banks now hold more gold than US Treasuries for the first time in three decades.”
Domestic demand is also expected to play a role in cushioning price swings.
“During this festive season, seasonal buying and wedding-related demand in India will cap the downside,” said Mohit Kamboj, Former President of the India Bullion and Jewellers Association.
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Investors are now awaiting US non-farm payroll data due Friday (September 5), which could shape the Fed’s policy decision later this month.
