Gold, silver price today: Precious metals hit lifetime high; here’s what’s driving the rally

Gold and silver prices on Monday surged to lifetime highs in the domestic futures market, following a strong rally in international markets. Investors were encouraged by expectations of US Federal Reserve rate cuts and a weaker dollar, which boosted demand for precious metals.On the Multi Commodity Exchange (MCX), gold futures for October delivery jumped Rs 1,204, or 1.06%, to a lifetime high of Rs 1,14,992 per 10 grams. The December contract rose Rs 1,034, or 0.9%, to Rs 1,15,925 per 10 grams. Last week, gold had gained Rs 4,188, or 3.77%, to close at Rs 1,14,891 per 10 grams, PTI reported.“Gold prices have been shining for quite some time, and the past week saw gold prices touching new highs in the domestic as well as international markets,” said Prathamesh Mallya, DVP-Research, Non-Agri Commodities and Currencies at Angel One.He added that the rally is showing no signs of slowing, with investors unsure whether to enter the market or book profits at these high levels. “Tariff levies, the Russia-Ukraine war, US-China trade tensions, and a host of other factors continue to drive liquidity and momentum in gold prices in the recent past,” Mallya told PTI.Silver also saw strong gains. The December contract rose Rs 2,290, or 1.61%, to a record Rs 1,44,179 per kilogram, while the March 2026 contract jumped Rs 2,559, or 1.79%, to Rs 1,45,817 per kilogram. Last week, the white metal had surged Rs 12,051, or 9.28%, to Rs 1,41,889 per kilogram.Globally, gold futures for December delivery rose nearly 1% to $3,837.72 per ounce, and silver climbed over 1% to $47.39 per ounce.“Gold prices climbed to a record high, driven by growing expectations of further US rate cuts and a weaker dollar,” said Jigar Trivedi, senior research analyst at Reliance Securities.Trivedi noted that recent US inflation data for Personal Consumption Expenditures met market expectations, supporting the view that the Federal Reserve may continue easing monetary policy later this year. The dollar index, which tracks the greenback against six major currencies, was 0.18% lower at 97.97, giving further support to precious metals.“Traders are currently pricing in a 90% chance of a rate cut in October and about a 65% probability of an additional move in December. At the same time, investors are monitoring the risk of a potential US government shutdown, which could delay the release of key labour market data and complicate the Fed’s decision-making process,” Trivedi added.Adding to global uncertainty, US President Donald Trump last week announced new tariffs on imported drugs, trucks, and furniture, effective from October 1, further clouding the economic outlook.Market experts say that the combination of expectations of rate cuts, geopolitical tensions, and trade risks is likely to keep gold and silver prices elevated in the near term.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)