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  5. Silver futures hit another peak, gold remains stable as investors await US inflation data; check details

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Silver futures hit another peak, gold remains stable as investors await US inflation data; check details

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By Vani Dua

3 min read | Updated on August 28, 2025, 17:10 IST

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SUMMARY

Gold remains steady as investors await key US economic indicators, like inflation data, that could determine the trajectory of US Federal Reserve policy. The Fed Chair Jerome Powell suggested last week that an interest rate cut is possible in the upcoming September meeting.

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Domestic gold prices have climbed ₹1,100 in the previous two trading sessions to stand above the ₹1 lakh level at ₹1,01,270 per 10 gram.

Silver futures jumped to another lifetime high of ₹1,17,138 per kg on Thursday, August 28, after touching an all-time high of ₹1,16,729 per kg on the Multi-Commodity Exchange (MCX) on Tuesday.

At around 4:30 pm, the contracts for September delivery were trading with an open interest of 6,374 lots on the MCX.

Silver prices in India stood at their peak of ₹1,20,000 per kg, as per a PTI report citing data from the All India Sarafa Association.

Gold prices remain firm globally while investors are looking forward to crucial US economic data scheduled to be released later this week.

Gold October futures (expiry on October 3, 2025) were trading flat at ₹1,01,656 per 10 gram, up 0.1% (₹114) from the previous close.

Domestic gold prices have climbed ₹1,100 in the previous two trading sessions to stand above the ₹1 lakh level at ₹1,01,270 per 10 gram as of August 27.

What is driving silver and gold prices?

Silver

In the last few months, silver prices have climbed significantly, rising by over 26% in the past year. As per reports, silver has been in short supply for five consecutive years, mainly due to its rising demand from industrial and green-tech sectors. Underinvestment and environmental hurdles have kept the gap persistent, boosting silver prices.

Usage of silver in solar panels, EVs, electronics, and medical instruments, along with AI applications, has kept demand for silver high.

Increased trade tensions around the globe have also fueled silver, as the white metal’s potential as a safe-haven metal is on the rise.

Gold

Gold, as a popular safe-haven metal, has seen a fantastic rally this year. The yellow metal has jumped over 25% just in 2025, while its year-to-date gains stand at nearly 30%.

Fed watch: Gold remains steady as investors await key US economic indicators, like inflation data, that could determine the trajectory of US Federal Reserve policy. The Fed Chair Jerome Powell suggested last week that an interest rate cut is possible in the upcoming September meeting, which could further impact gold’s trajectory in the next few weeks.

The US Personal Consumption Expenditures (PCE) Price Index will be released on Friday, August 29.

Currency movements: Gold benefits from a weaker dollar, as it makes the precious metal more attractive for investors across the globe. Similarly, a decline in the Indian rupee impacts domestic gold prices, as a downward trend fuels the yellow metal’s rates in the country.
Trade tensions: Gold tends to thrive amid geopolitical tensions and trade war situations. This year, with US President Trump’s tariff concerns, gold has gotten a stellar upward push.
Festive season: Gold prices in India are expected to rise even further in the coming months, as the precious metal has cultural significance in the country, which drives its demand during the festive season.

Inflows into gold exchange-traded funds (ETFs) fell by as much as 40% to ₹1,256 crore in July, down from ₹2,080 crore in June, even when gold prices continued to rise.

As per market experts, profit-booking and high rates were among the two primary reasons for the decline in the ETF inflows.

SIP
Consistency beats timing.
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About The Author

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Vani Dua is a journalism graduate from LSR College, Delhi. At Upstox, she writes on personal finance, commodities, business and markets. She is an avid reader and loves to spend her time weaving stories in her head.

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