Gold prices soar ₹2,700 to surpass ₹1.23 lakh/10 gm as rupee hits record low; silver above ₹1.57 lakh/kg

Gold prices in Delhi witnessed a sharp rally on Monday, soaring ₹2,700 to a fresh peak of ₹1,23,300 per 10 gram, fuelled by safe-haven buying and a weak rupee.

As per data by the All India Sarafa Association, gold of 99.9% purity (24K) closed at ₹1,20,600 per 10 gram on Friday.

The yellow metal of 99.5% purity jumped ₹2,700 to a record high of ₹1,22,700 per 10 gram after closing at ₹1,20,000 per 10 gram on Friday.

Silver made remarkable gains as well, rising by as much as ₹7,400 to a new lifetime high of ₹1,57,400 per kg on Monday against the previous closing price of ₹1,50,000 per kg.

In the overseas markets, spot gold jumped 2% to a record high of $3,949.58 per ounce, while silver added 1% to hit a fresh peak of $48.75 per ounce.

Futures trade

Earlier in the day, gold futures for the December delivery rose by 1.6% (₹1,962) to a lifetime high of ₹1,20,075 per 10 gram on the Multi Commodity Exchange (MCX). The contracts soared to a fresh peak, lifted by safe-haven buying amid the prolonged US government shutdown and growing hopes for a rate cut by the US Federal Reserve.

Gold contracts for the February expiry added ₹2,032 (1.7%) to hit an all-time high of ₹1,21,365 per 10 gram on Monday.

Silver futures for the December delivery jumped 1.5% (₹2,233) to a record high of ₹1,47,977 per kg on the MCX.

Internationally, Comex gold futures for December delivery climbed 1.2% to a record high of $3,957.90 per ounce on Monday. Silver futures extended their gains as well, rising by 1% to $48.47 per ounce, their highest level since April 2011.

Gold prices have been on a bull run due to market volatility, rising trade war concerns, increasing geopolitical tensions, heavy central bank buying and weak currencies. Silver rises with gold, but the white metal has also been aided by increased industrial demand and sustained supply deficit in the global market.

The upcoming festive season in India is expected to boost bullion prices further, as gold and silver hold key cultural and traditional significance in the country. Gold prices are known to rise aggressively near Diwali, which means that the precious metals' bull run could get steeper in October.