Gold and silver prices have once again captured the spotlight, touching fresh record highs on the Multi-Commodity Exchange (MCX). The glittering rally comes amid global uncertainty, hopes of a US Federal Reserve rate cut, and persisting concerns around US tariff policies. For investors, the big question is, is this the right time to buy bullion?
Gold and Silver Touch Lifetime Highs
On Monday’s session, MCX Gold October contracts surged over 2% to a historic Rs 1,05,937 per 10 grams. Silver was not far behind, with December contracts hitting a record Rs 1,24,214 per kg, marking an almost 2% rise. By mid-morning, gold was still holding strong at Rs 1,04,883, while silver traded near Rs 1,24,079, indicating bullish sentiment across the market.
Why Are Gold Prices Rising?
Several triggers are fueling this golden rally:
1. Hopes of a US Fed Rate Cut - Jerome Powell’s Jackson Hole speech hinted at a possible rate cut in September. Other Fed officials echoed similar sentiments, raising investor expectations. Markets are now pricing in an 87% chance of a 25-basis point cut this month.
2. Global Trade Uncertainty - US President Donald Trump’s unpredictable tariff stance has investors seeking safe-haven assets. Ongoing trade negotiations have shown little clarity, further pushing demand for gold.
3. Weak Dollar Index - With the US dollar losing over 2% last month, gold priced in dollars became cheaper for international buyers, sparking higher demand.
4. Economic Data in Focus - Investors are eyeing upcoming US jobs and inflation data. Any weak signals could further strengthen the case for a rate cut, keeping gold in demand.
Market analysts remain bullish on both gold and silver in the short term. Manoj Kumar Jain, Prithvifinmart Commodity Research: 'Avoid short selling in bullion and stick to a buy-on-dips strategy. Gold may test Rs 1,07,000 and silver could touch Rs 1,27,000 soon.' Rahul Kalantri, Mehta Equities: 'Gold has key support at Rs 1,03,340 and resistance at Rs 1,04,750, while silver support lies near Rs 1,19,450 with resistance up to Rs 1,21,650.'
Is It the Right Time to Buy?
With momentum strong, many experts suggest investors consider gradual buying instead of profit-booking. For those seeking safe-haven assets, gold and silver remain attractive in the current climate of global uncertainty and shifting monetary policies. Short-term volatility may occur, but the long-term outlook for bullion continues to look promising, especially with central banks tilting toward rate cuts and inflationary risks staying in play.
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