NextFin news, New Delhi witnessed a significant surge in precious metal prices on Friday, with gold and silver reaching record highs amid growing expectations of an interest rate cut by the US Federal Reserve next week. According to the All India Sarafa Association, gold of 99.9% purity climbed Rs 700 to a lifetime peak of Rs 1,13,800 per 10 grams, inclusive of all taxes, extending gains for the fourth consecutive session. Silver prices also rebounded sharply, rising Rs 4,000 to Rs 1,32,000 per kilogram, breaking a two-day losing streak.
The rally in gold prices marks a 44.14% increase in the current calendar year, with prices rising from Rs 78,950 per 10 grams on December 31, 2024, to the current record. Silver prices have similarly surged by 47.16% since the start of the year, climbing from Rs 89,700 per kilogram.
Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, attributed the price surge to recent US macroeconomic data that heightened expectations of multiple interest rate cuts by the Federal Reserve before the end of 2025, which encouraged buying activity in bullion markets. Gandhi also noted that silver's rally was supported by positive trends in industrial metals and strong inflows from exchange-traded funds.
Internationally, spot gold increased by USD 12.69, or 0.35%, to USD 3,646.69 per ounce, while spot silver rose 1.82% to USD 42.31 per ounce. Jateen Trivedi, Vice President and Research Analyst at LKP Securities, highlighted that gold remained firm on Comex trading, factoring in expectations of a Fed rate cut to support the US economy. Praveen Singh, Head of Commodities and Currencies at Mirae Asset ShareKhan, indicated that gold is expected to maintain a positive bias despite a healthy risk appetite reducing safe-haven demand in the near term.
Chintan Mehta, CEO of Abans Financial Services, emphasized that investors are closely monitoring the Federal Reserve's tone, upcoming US labor market data, and the political environment, all of which could influence the rate outlook. He noted that with persistent inflation, shifting rate cut expectations, and escalating geopolitical risks, gold remains a focal point for traders anticipating further volatility.
The price movements occurred on Friday, September 12, 2025, in New Delhi, reflecting both local and global market dynamics influenced by US monetary policy expectations.
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