Gold Prices Hit Record ₹1.1 Lakh Amid Global Geopolitical Tensions and Fed Rate Cut Hopes

New Delhi, Sept 2025 : Gold prices soared to historic highs on Tuesday, crossing the ₹1,10,000 mark, as investors sought safe-haven assets amid intensifying global geopolitical uncertainties and expectations of a U.S. Federal Reserve rate cut this week.

According to the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold stood at ₹10,951 per gram at 10:17 am. Earlier in the day, gold touched an all-time high of ₹1,10,650 per 10 gm, up from ₹1,09,820 recorded on Monday. Globally, spot gold traded at $3,679 an ounce, just shy of Monday’s peak of $3,685, data from the World Gold Council showed.

Market experts attributed the surge to a combination of factors—rising geopolitical risks impacting global trade, a weakening dollar, and expectations of monetary easing by the U.S. central bank. The Federal Reserve is widely anticipated to announce a 25-basis-point rate cut on September 17, with futures markets placing the probability at 96.4 per cent. Analysts said both gold and silver are likely to remain buoyant through the week.

Domestic gold prices also reflected the rally. Rates stood at ₹1,10,260 per 10 gm in New Delhi, ₹1,10,450 in Mumbai, ₹1,10,540 in Bengaluru, and ₹1,10,310 in Kolkata. Chennai reported the highest price at ₹1,10,770.

Silver followed suit, with October 5 futures on the Multi Commodity Exchange (MCX) climbing to ₹1,29,452 per kg. Analysts linked silver’s rise not only to safe-haven buying but also to growing industrial demand from electric vehicles and the solar power sector.

Investor interest in gold has also strengthened. India’s gold exchange-traded funds (ETFs) recorded net inflows of $233 million in August 2025—a 67 per cent jump from $139 million in July, according to World Gold Council data.

Meanwhile, inflation data highlighted gold’s increasing weight in the economy. The August print showed that a 40 per cent year-on-year rise in gold prices added nearly 43 basis points to the Consumer Price Index (CPI), underlining the metal’s influence on core inflation trends.

With global uncertainties intensifying, analysts believe gold will continue to shine as the preferred hedge for investors in the near term.