Weekly gold and silver wrap: Gold futures soar to a new all-time high; Silver surges nearly 4% this week

The safe-haven metal has surged nearly 4% over the week. At around 7:59 pm, the gold futures for October delivery were trading 1.04% higher at ₹1,07,521 per 10 grams.

GoldM (Mini Gold Futures Contracts with October 3, 2025 expiry) also reached a lifetime high of ₹1,07,500 per 10 gram on Friday after closing at ₹1,06,310 per 10 gram the day prior.

At around 8:02 pm, GoldM futures were trading at ₹1,07,364 per 10 grams. The trading unit of these contracts is 100 grams.

Domestic gold prices rose ₹900 to ₹1,06,970 per 10 grams in Delhi on Friday, inching closer to record high levels on fresh buying by stockists and firm global trends, according to a PTI report, which cited All India Sarafa Association.

Key factors driving the gold rally

Investors rush towards gold, a safe-haven asset, as the world continues to be in the grip of uncertain global dynamics, characterised by tariff threats, mounting debts, and worsening labour markets in the US, and wars.

Potential Federal Reserve rate cut

The surge in gold price follows a growing conviction among traders that the Federal Reserve may opt for an interest rate cut at its upcoming Federal Open Market Committee (FOMC) meeting, which will be held from September 16 to 17.

In August, the US Fed Chair Jerome Powell hinted at a rate cut during his speech at the Jackson Hole Symposium. During the speech, Powell said that the slowdown in labour force growth in the US, along with the risk of inflation, may warrant adjusting its policy stance. The current Federal Funds Target Rate stands in the range of 4.25% to 4.50%.

US tariffs

The chase after the safe-haven asset was also driven by looming uncertainties over US tariffs. In August, US President Donald Trump imposed a 50% tariff on all Indian goods and services. Last week, a US appeals court upheld the decision that the reciprocal tariffs were unlawful. However, President Donald Trump criticised the decision and said he would challenge the ruling in the Supreme Court.

Central bank buying

Apex banks around the world have been increasing their gold reserves as they take a step back from the US dollar. Furthermore, central banks are projected to buy 1,000 tons of gold in 2025, marking their fourth consecutive year of gold purchase. In May 2025, central banks increased their gold reserves by a net of 20 trillion tons, according to the World Gold Council. Furthermore, the yellow metal stands right after the US dollar as a reserve asset.

Festive demand

With the festive season beginning in late August, gold demand has also been on the rise. The safe-haven metal carries cultural and traditional significance in India.

Silver prices

Silver futures for December expiry hit an intraday high of ₹1,26,081 per kg on the MCX on Friday, September 5. On Wednesday, the white metal hit a lifetime high of ₹1,26,300 per kg.

At around 8:03 pm, Silver December contracts were trading 0.55% higher at ₹1,26,081 per kg. Over the week, silver prices surged nearly 4%.