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Gold jumps by 1.02% to trade at Rs 1,04,883 per 10 grams, while silver trades higher by 1.83% at Rs 1,24,100 per kg in the futures market on the MCX in the early trade.
Gold & silver prices today, September 1.
Gold and silver prices on Monday surged to touch their all-time highs on the MCX, amid hopes of an interest rate cut by the US Federal Reserve, rupee depreciation, and Trump Tariff concerns. Gold jumped by 1.02% to trade at Rs 1,04,883 per 10 grams, while silver traded higher by 1.83% at Rs 1,24,100 per kg in the futures market on the MCX in the early trade.
In Mumbai, the price of 24-carat gold stood at Rs 1,05,880 per 10 grams, while 22k gold was available at Rs 97,050 per 10 grams.
Why Are Gold, Silver Prices Rising?
Gold prices in India have surged in line with the international market. A weaker rupee further made gold costlier for imports, thus raising domestic gold prices.
Rahul Kalantri, vice-president (commodities) of Mehta Equities, said, “In India, both precious metals closed on a life-time high. The US implemented higher tariffs on Indian goods, prompting investors to seek refuge in safe-haven assets. The Indian rupee weakened significantly against the dollar, hitting an all-time low, which further drove up local bullion prices. In international markets, gold futures closed above $3,500 per troy ounce for the first time, and silver future ended above $40, its highest level in 14 years.”
The rupee depreciated 17 paise to 88.26 against the US dollar in early trade on Monday, as persistent foreign fund outflows weighed on investor sentiments. A fall in the rupee makes gold imports costlier in India, thereby pushing up domestic gold prices.
In the international market, spot silver rose 1.6% to $40.31 per ounce, the highest since September 2011. US spot gold prices also hit a more than four-month high on Monday.
“Dovish comments from Fed’s Daly helped traders looked past a higher core PCE read on Friday, and kept the door open for a 25 basis point cut this month… Though a US appeals court has also deemed most of (US President Donald) Trump’s tariffs illegal to weigh further on the US dollar today and send gold to a four-month high,” said City Index senior analyst Matt Simpson, according to Reuters.
On the trade front, US Trade Representative Jamieson Greer said on Sunday the Trump administration is continuing its talks with trading partners despite a US appeals court ruling that most of Trump’s tariffs are illegal, according to the report.
Non-yielding gold typically performs well in a low-interest-rate environment.
What Is The Price Of 22kt, 24kt Gold Rates Today In India Across Key Cities On September 1?
| City | 22K Gold (per 10gm) | 24K Gold (per 10gm) |
|---|---|---|
| Delhi | Rs 97,200 | Rs 1,06,030 |
| Jaipur | Rs 97,200 | Rs 1,06,030 |
| Ahmedabad | Rs 97,100 | Rs 1,05,930 |
| Patna | Rs 97,100 | Rs 1,05,930 |
| Mumbai | Rs 97,050 | Rs 1,05,880 |
| Hyderabad | Rs 97,050 | Rs 1,05,880 |
| Chennai | Rs 97,050 | Rs 1,05,880 |
| Bengaluru | Rs 97,050 | Rs 1,05,880 |
| Kolkata | Rs 97,050 | Rs 1,05,880 |
What Factors Affect Gold Prices In India?
International market rates, import duties, taxes, and fluctuations in exchange rates primarily influence gold prices in India. Together, these factors determine the daily gold rates across the country.
In India, gold is deeply cultural and financial. It is a preferred investment option and is key to celebrations, particularly weddings and festivals.
With constantly changing market conditions, investors and traders monitor fluctuations closely. Staying updated is crucial for effectively navigating dynamic trends.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
Read More