CHENNAI: Gold and silver prices touched fresh record highs on the Multi Commodity Exchange (MCX) on September 2, supported by a combination of global and domestic factors. Gold October futures rose to Rs 1,05,937 per 10 grams, while silver December futures climbed to Rs 1,24,369 per kilogram. In international markets, spot gold reached $3,508.50 an ounce and December futures traded as high as $3,564.40 an ounce. Silver too hit $40.71 an ounce, a level last seen more than a decade ago.
The rally in precious metals has been driven mainly by expectations that the US Federal Reserve may cut interest rates soon, coupled with a weakening US dollar. A softer dollar makes bullion cheaper for holders of other currencies and increases its global appeal. At the same time, rising political pressure on the Fed and trade tensions have added to investor concerns, prompting a strong shift into safe-haven assets such as gold and silver.
In India, the weakness of the rupee has further boosted local prices as imports become costlier. Analysts also point out that silver is receiving additional support from rising industrial demand, particularly in sectors such as electronics and renewable energy, which has given it an edge over gold in terms of price momentum this year.
Market experts advise caution despite the strong uptrend. Several technical indicators show that gold is trading in an overheated zone, which means sharp corrections cannot be ruled out. Nevertheless, analysts broadly recommend a buy-on-dips strategy rather than chasing prices at record levels. Forecasts suggest that gold could move towards Rs 1,07,000 per 10 grams in the near term, while silver may advance to around Rs 1,27,000 per kilogram.
The outlook for precious metals remains positive as global uncertainty, expectations of monetary easing, and domestic currency weakness continue to support prices. At the same time, investors should be prepared for volatility in the short term as upcoming US economic data, Federal Reserve signals, and fluctuations in the rupee could all influence market direction.