In a stunning surge that has caught investors off guard, gold and silver prices have skyrocketed to unprecedented levels, marking all-time highs across major markets. Gold touched ₹78,500 per 10 grams in Mumbai, while silver leaped to ₹98,000 per kilogram, reflecting a sharp 3-5% daily gain.
This dramatic rally comes amid escalating global tensions, persistent inflation pressures, and a weakening US dollar. Traders point to the ongoing geopolitical unrest in the Middle East as a key trigger, driving safe-haven demand for precious metals. Central banks worldwide, including the RBI, have ramped up gold purchases, further fueling the upward momentum.
Domestic markets echoed international trends, with MCX gold futures closing at record peaks. Silver, often seen as gold’s volatile cousin, outpaced the yellow metal with even steeper gains. Industry experts attribute this to industrial demand in solar panels and electronics, coupled with speculative buying.
For jewelers and investors, the news is bittersweet. While long-term holders celebrate paper gains, short-term buyers face sticker shock ahead of festive seasons. ‘Expect volatility to persist,’ warns a veteran analyst, as Fed rate cut expectations add another layer of uncertainty.
Looking ahead, forecasts suggest gold could breach ₹80,000 soon if current trends hold. Silver’s rally might cool slightly, but its fundamentals remain robust. Investors are advised to diversify, with some eyeing sovereign gold bonds as a stable alternative amid this frenzy.
