Gold prices surged by ₹2,700, reaching a new high of ₹1,18,900 per 10 grams in the national capital, driven by ongoing global demand for the safe-haven asset amid a declining rupee, which recently hit an all-time low due to an increase in US H-1B visa fees. According to the All India Sarafa Association, gold of 99.9% purity had closed at ₹1,16,200 per 10 grams in the previous trading session.
In the local bullion market, gold of 99.5% purity saw a rise of ₹2,650, reaching a record of ₹1,18,300 per 10 grams (inclusive of all taxes). This follows a closing price of ₹1,15,650 per 10 grams on Monday. Traders noted that the significant decline of the rupee against the US dollar is contributing to the increase in gold prices.
Since the beginning of the year, gold prices have surged by ₹39,950 per 10 grams, reflecting a gain of 50.60%, climbing from ₹78,950 per 10 grams on December 31, 2024. Similarly, silver prices soared by ₹3,220, achieving an all-time high of ₹1,39,600 per kilogram (inclusive of all taxes) on Tuesday, compared to ₹1,36,380 per kg in the previous session. Year-to-date, silver prices have increased by ₹49,900 per kilogram, or 55.63%, from ₹89,700 per kg on December 31, 2024.
Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, stated, “In the Delhi markets, the spot gold price (24 carats) is trading at another record high from the previous close. A weaker rupee further enhances domestic bullion prices.” On Tuesday, the rupee depreciated by 47 paise to a record low of 88.75 against the US dollar amid persistent foreign fund outflows, exacerbated by the rise in US H-1B visa fees, which may adversely impact Indian IT services exports.
In international markets, spot gold increased by over 1% to reach a record high of $3,791.10 per ounce. Kaynat Chainwala, AVP of Commodity Research at Kotak Securities, noted, “Spot gold surged to a fresh all-time high of $3,791 per ounce on Tuesday, driven by growing expectations for additional US rate cuts in 2025 and China’s efforts to position itself as a custodian of foreign sovereign gold reserves.”
Chainwala further highlighted that momentum in precious metal prices began building on Friday, when exchange-traded funds added 8.61 lakh troy ounces of gold to their holdings—the largest one-day inflow since January 2022. SPDR Gold Trust reported a 0.60% increase in holdings to 1,000.57 tonnes, indicating the highest level in over three years and reinforcing bullish sentiment.
Renisha Chainani, Head of Research at Augmont, remarked, “Gold prices have reached a new record high driven by expectations that the US Federal Reserve may lower interest rates further this year.” The Federal Reserve recently announced its first rate cut of the year and signaled the possibility of more cuts ahead due to a weakening labor market. Market participants have priced in nearly two additional 25 basis-point cuts during the Fed’s remaining meetings this year.
Chainani added that strong central bank purchases, consistent ETF inflows, and ongoing geopolitical risks, including the Russia-Ukraine conflict and economic ramifications of tariffs imposed by President Donald Trump, have also contributed to the safe-haven appeal of gold.
Spot silver was trading 0.57% higher at $44.32 per ounce. Jigar Trivedi, Senior Research Analyst at Reliance Securities, noted, “Silver remained above $44 per ounce as several Fed officials urged caution on further rate cuts, citing stabilizing inflation, while new governor Stephen Miran warned that the central bank was misjudging policy tightness and risking the labor market without deeper easing.”
Praveen Singh, Head of Commodities and Currencies at Mirae Asset ShareKhan, indicated that investors will closely monitor the Fed Chair Jerome Powell’s speech and US PMI numbers for further insights on monetary policy direction. Singh predicted, “There may be some profit booking as Chair Powell might not sound too dovish and PMIs may be reassuring.”
Published on September 23, 2025.
