Gold prices surged to an all-time high on Tuesday, crossing the ₹1,10,000 mark per 10 grams, fueled by strong safe-haven demand and expectations of a US Federal Reserve rate cut.
According to the India Bullion and Jewellers Association (IBJA), 24-carat gold was priced at ₹10,951 per gram at 10:17 a.m. Earlier, gold touched ₹1,10,650 per 10 grams, up from ₹1,09,820 on Monday. In the global market, spot gold traded at $3,679 per ounce, just below Monday’s record of $3,685, World Gold Council data showed.
Analysts cited rising geopolitical tensions, the likelihood of a US Fed rate cut on September 17, and a weakening dollar as key drivers of the rally. They expect both gold and silver to continue with a bullish bias through the week.
Across metro cities, prices stood at ₹1,10,260 in New Delhi, ₹1,10,450 in Mumbai, ₹1,10,540 in Bengaluru, ₹1,10,310 in Kolkata, and ₹1,10,770 in Chennai, the highest among metros.
Silver also gained, with October 5 MCX futures trading at ₹1,29,452 per kg, supported by rising industrial demand from electric vehicles and solar energy sectors.
India’s gold ETFs saw inflows of $233 million in August 2025, a 67% jump from July’s $139 million, according to World Gold Council data. However, the surge in gold prices is adding to inflationary pressures. The August CPI showed that gold’s 40% year-on-year spike contributed nearly 43 basis points to core inflation.
