Gold prices rose to a record high on Tuesday, crossing the Rs 1,10,000 mark as investors bet on the precious metal as geopolitics escalate and a US Federal Reserve rate cut is expected later this week.
The price of 24-carat gold was Rs 10,951 a gram at 10:17 am, according to data announced by the India Bullion and Jewellers Association (IBJA).
Rates had earlier during the session reached Rs 1,10,650 a 10-gram, higher than Rs 1,09,820 on Monday. Spot gold was trading around $3,679 an ounce, a tad lower than Monday's record $3,685, World Gold Council data indicated.
Analysts are citing increased geopolitical uncertainty, in addition to increasing belief that the Fed will cut interest rates on September 17. The weakening US dollar has also fueled the advance, prompting forecasters to predict positive momentum to continue for both gold and silver in the coming days.
Domestic city-wise prices also followed the rising trend: New Delhi Rs 1,10,260 per 10 grams, Mumbai Rs 1,10,450, Bengaluru Rs 1,10,540, and Kolkata Rs 1,10,310. Chennai had the highest rate, with prices hitting Rs 1,10,770.
Silver prices too strengthened, with October 5 MCX futures quoted at Rs 1,29,452 a kg. Analysts attributed the rise to increasing industrial demand, especially from the electric vehicle and solar energy industries. Current forecasts give a 96.4 per cent chance of a 25-basis-point rate cut when the US Federal Reserve meets on September 17.
India's gold exchange-traded funds (ETFs) saw net inflows of $233 million in August 2025, a steep 67 per cent higher than $139 million in July, based on World Gold Council statistics.
August inflation report also showed that gold was a major contributor to the maintenance of high core inflation. With prices rising 40 per cent year-on-year, the precious metal contributed about 43 basis points to the Consumer Price Index (CPI).
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