Editor’s Note
This article highlights the sustained rally in gold and silver prices, driven by seasonal demand in India and market expectations of a potential U.S. Federal Reserve interest rate cut.
In Bangalore, the rally in gold and silver prices continued for the second day of the week. Navratri will be celebrated with great fanfare across the country this month. Meanwhile, with Dhanteras and Diwali approaching in the coming month of October, all eyes are on gold prices.
Expectations for an interest rate cut by the US Federal Reserve this month have increased. Investors believe the Fed may soon ease rates, which has provided significant support to gold prices. When interest rates fall, gold becomes more attractive to investors because investing in non-interest-bearing assets becomes more profitable.
In Bangalore, 24-carat gold is trading at ₹106,090 per 10 grams. A day earlier, gold was trading at ₹105,880 per 10 grams.
Today, 22-carat gold prices are seeing a surge. In Bangalore, 22-carat gold is priced at ₹97,250 per 10 grams. A day earlier, it was ₹97,050 per 10 grams.
An increase is being recorded in 18-carat gold prices. Today in Bangalore, 18-carat gold is priced at ₹79,570 per 10 grams. A day earlier, it was ₹79,410 per 10 grams.
In Mumbai today, 24-carat gold is priced at ₹106,090 per 10 grams and 22-carat gold is priced at ₹97,250 per 10 grams.
In Jaipur today, 24-carat gold is priced at ₹106,240 per 10 grams and 22-carat gold is priced at ₹97,400 per 10 grams.
In Lucknow today, 24-carat gold is priced at ₹106,240 per 10 grams and 22-carat gold is priced at ₹97,400 per 10 grams.
In Delhi today, 24-carat gold is priced at ₹106,240 per 10 grams and 22-carat gold is priced at ₹97,400 per 10 grams.
In Kolkata today, 24-carat gold is priced at ₹106,090 per 10 grams and 22-carat gold is priced at ₹97,250 per 10 grams.
According to a report by Nirmal Bang, spot silver prices rose nearly 2.6% on Monday to reach around $40.75 per ounce. Silver has given a return of nearly 40% so far this year. Meanwhile, gold prices also rose 1.2% to near $3,500 per ounce. In April, gold had reached a record high above $3,500. On Monday, gold set a new record at the London Bullion Market Association auction.
Over the past three years, the prices of both gold and silver have more than doubled. Major reasons behind this include:
- Geopolitical tensions
- Business and trade-related uncertainties
- Increasing global risks
- Expectations of rate cuts from the Federal Reserve
Investors believe the US central bank (Federal Reserve) may cut interest rates in its upcoming meeting. The US jobs report due this week may indicate that the labor market is weakening. This will further clear the path for interest rate cuts.
Meanwhile, a US federal appeals court has ruled that the global tariffs imposed by the President were illegal. However, the court also said the tariffs will remain in effect for now while the case proceeds. When Trump announced the tariffs in April, gold had surged to a record level. But later, when he began to back down from the tough proposals, gold prices remained within a limited range.
This year, silver has shown stronger gains than gold. Investors have continuously invested money in silver exchange-traded funds (ETFs). Until August, silver holdings in ETFs have been increasing for seven consecutive months.
The US dollar is weakening. This has made it easier for major consumer countries like China and India to buy gold and silver. This is why demand and prices for both metals are rising rapidly.