Precious metals hit fresh peaks on Friday, with the yellow metal hitting Rs 1,13,800 per 10 grams, and silver crossing Rs 1,32,000 per kilogram in Delhi. The surge in the prices of gold and silver comes amid strong global demand and heightened expectations of an interest rate cut by the US Federal Reserve next week. According to the All India Sarafa Association, the precious metal of 99.9 per cent purity extended gains for the fourth straight session by jumping Rs 700 to hit a record high of Rs 1,13,800 per 10 grams (inclusive of all taxes). It had closed at Rs 1,13,100 per 10 grams in the previous market session.
Will Gold Price Rise Further?
Gold has surged more than 40 per cent since December 2024, fuelled by speculative long positions, ETF inflows, and a global shift away from the US dollar as fiscal deficits widen and debt-servicing costs climb. But gold’s rallies tend to come in bursts.
In 2008 during the Global Financial Crisis, it rose around 40 per cent in just eight months. During Covid, it jumped from about Rs 39,000 to over Rs 55,000, a gain of nearly 42 per cent before stabilising. According to Ankit Patel, Co-founder and Partner, at Arunasset Investment Services, the current move has a similar profile.
"It suggests we may be closer to the mature phase of this run. Prices could consolidate or drift another 10 per cent higher before finding equilibrium. From the current level of around Rs 1.13 lakh, it can go up to around Rs 1,24,000 - Rs 1,25,000," Patel said.
What Should Investors Do?
For investors, the takeaway is not to chase extremes, but to gradually accumulate on corrections.
"For medium to long-term investors, even the current levels remain reasonable entry points. Gold’s hedge value remains intact, and positioning early helps capture the next wave of upside when it comes," he added.
Gold, Silver On MCX
Gold prices rose by Rs 675 to trade near record levels at Rs 1,09,656 per 10 grams in the domestic futures market on Friday, amid a strong global trend and firm investor demand. The yellow metal had touched an all-time high of Rs 1,09,840 per 10 grams on Tuesday.
In the international market, Comex gold futures for December delivery rose USD 20.40, or 0.56 per cent, to USD 3,694 per ounce, trading near its lifetime peak.
The most traded precious metal futures on Tuesday had scaled a record of USD 3,715.20 per ounce.
Meanwhile, the silver futures hit a fresh record high of Rs 1,29,392 on the Multi Commodity Exchange (MCX). The silver futures, maturing on December 5, 2025, started the session at Rs 1,27,599, a gain of Rs 661 from the previous close of Rs 1,26,938. It further touched the record high of Rs 1,29,392.
