Gold Rates In India At New High; Big Hike In MCX Gold By Rs 2,113; Will Gold Prices In Your City Take U-Turn?

Gold rates in India continue to hit new all-time highs, with the MCX gold price rising by a whopping Rs 2,113 in 10 grams on September 1. Precious metals like gold and silver have seen massive appetite due to heightened trade tensions internationally. The US market is closed on Monday; however, spot gold and silver prices flirted around their new peaks. A US-interest rate cut in September will be eyed massively. Will gold and silver prices reverse its trend soon?

Gold & Silver Prices Outlook:

As per Rahul Kalantri, VP Commodities, Mehta Equities, last week, gold and silver prices surged globally and domestically, fuelled by escalating trade tensions globally. In India both precious metals closed on life time high.

He added, "The U.S. implemented higher tariffs on Indian goods, prompting investors to seek refuge in safe-haven assets. The Indian rupee weakened significantly against the dollar, hitting an all-time low, which further drove up local bullion prices. In international markets, gold future closed above $3,500 per troy ounce for the first time, and silver future ended above $40-its highest level in 14 years."

Analysts cite global economic uncertainty and a weakening rupee as key factors behind the continued rise in precious metal prices.

Accordingly, Kalantri said, "Gold has support at $3420-3395 while resistance at $3465-3480. Silver has support at $39.35-39.10 while resistance is at $40.05-40.35. In INR gold has support at Rs1,03,340-1,02,940 while resistance at Rs1,04,450-1,04,750. Silver has support at Rs1,19,450-1,18,850 while resistance at Rs1,20,950, 1,21,650."

Meanwhile, Aksha Kamboj, Vice President - India Bullion and Jewellers Association and Executive Chairperson - Aspect Global Ventures said, this week could be pivotal for gold prices, as a U.S. appeals court has ruled President Trump's tariffs illegal, and any further developments on this issue will be closely monitored by the markets. Continued weakness in the U.S. dollar may also lend support to bullion. On the economic front, several key jobs reports, including Friday's non-farm payrolls, will play a crucial role in shaping expectations around a potential interest rate cut by the Federal Reserve in September.

"Meanwhile, in the domestic market, a weakening rupee is keeping gold prices elevated, with rates likely to stay above ₹1 lakh per 10 grams," Kamboj said.

Additionally, Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, growing trade tariff concerns and unresolved India-US trade-related issues continue to keep gold elevated, while the depreciating rupee makes gold more expensive in Indian markets. In the coming days, gold prices are expected to remain in the range of Rs 1,00,000- Rs 1,05,000.