Gold prices in India surged to an all-time high on Monday, with domestic rates reaching Rs 1.19 lakh per 10 grams as investors increased allocations to bullion amid seasonal buying and mounting global uncertainty.
Silver traded in tandem, touching multi-year highs as demand from both retail and investment channels rose ahead of the festival season and amid safe-haven flows.
Market reports said the single-day move reflected a confluence of firm festive demand, technical buying and broader international cues that pushed both spot and futures contracts to fresh peaks.
Global markets showed parallel strength, with spot gold surpassing the $3,900-per-ounce mark as investors sought refuge from geopolitical and economic instability, and expectations grew for further interest-rate reductions by the U.S. Federal Reserve.
Spot gold climbed close to $3,958.57 an ounce on October 6, reflecting heightened safe-haven buying amid conflicts overseas, concerns about the U.S. political landscape and renewed central-bank purchases.
Reports noted that robust inflows into physical gold exchange-traded funds and central-bank buying had supported the international rally.
On India’s domestic platforms, futures and spot markets advanced with similar momentum. Multi Commodity Exchange contracts and local spot quotations moved to record levels as traders priced in sustained demand through October and the approaching Diwali festival, while a softer rupee amplified rupee-denominated gains.
Market snapshots showed sharp intraday moves, with trade reports pointing to single-day increases of several thousand rupees in benchmark quotes as liquidity and appetite for physical metal firmed, and as participants adjusted positions in response to global cues and domestic buying.
Analysts noted central bank purchases and ETF inflows of nearly 588 tonnes through September had underpinned the rally. Forecasts suggested continued upside into Diwali, with some estimates placing gold near Rs 1.20–1.22 lakh and silver around Rs 1.5 lakh in the coming weeks if current trends continue, driven by a combination of seasonal purchases and ongoing safe-haven demand.
Observers pointed out that the prospect of lower U.S. interest rates weakens the opportunity cost of holding non-yielding bullion, a dynamic that has encouraged both institutional and retail allocations.
Silver’s rally was particularly notable in regional trading centres, where prices were reported to have reached around Rs 1.50 lakh per kilogram in some domestic markets and about Rs 1.48 lakh per kg in other spot quotations.
In U.S. dollar terms, silver approached levels not seen in decades, driven by a mix of retail buying for jewellery and gifts, industrial demand, and speculative flows.
Commodity dealers in key hubs reported brisk activity in both wholesale and grey-market channels, and analysts pointed to constrained supplies together with renewed investor interest as contributors to the sharp move.
Intermediaries and trade bodies signalled mixed expectations for consumption through the season. Several industry reports suggested record-high prices might curb discretionary purchases of jewellery, yet historically strong cultural and ceremonial demand around Diwali and the wedding season could sustain baseline volumes.
Analysts monitoring futures and spot flows said volatility was likely to remain elevated in the near term as markets balance profit-taking, fresh buying and reactions to macroeconomic developments.
For consumers and small buyers, the rapid rise in benchmark prices translated into higher retail rates across cities, with local premiums and taxes further affecting final jewellery costs.
Market participants said that while investment demand — including coins, bars and ETFs — was a major driver of the recent leg up, consumer purchases for festivals continued to play an important role in supporting physical demand in India.
Traders advised caution as liquidity conditions and geopolitical developments remained notably fluid.
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