Gold Rate in India Skyrocket to All-Time High! Will Gold, Silver Rally Break Even More Records? Oct 8 Outlook

Gold Rate in India, Price Outlook: Gold prices in India have surged to record highs over the past two days. Factors such as geopolitical uncertainty, trade tensions, a weak US dollar, and expectations of Fed rate cuts have driven the rally, pushing gold to unprecedented levels on Tuesday, October 7. As investors assess how high gold prices may climb in the coming days, attention will turn to the gold and silver price movement on Wednesday, October 8.

The gold and silver price outlook will remain bullish as the festive season demand, geopolitical uncertainty and trade tensions will keep investors on edge. The prolonged US shutdown and increased gold ETF inflows will also impact the investors sentiment.

Gold Rate in India

The price of gold surged phenomenally on Tuesday. 24 karat gold rate in India surged by Rs 125 to Rs 12,202 per gram. Likewise, the price of 18 karat gold in India rose by Rs 115 per gram to Rs 11,185. The rate of 18 karat gold in India rallied by Rs 94 per gram to Rs 9,152.

Gold rate in India's phenomenal rally mirrored the record-breaking surge in the prices of the precious metal worldwide.

Silver Rate in India

The price of silver in India increased on Tuesday and inched closer to their record-high levels. Silver rate in India surged to Rs 157 per gram and to Rs 1,57,000 per kilogram. Silver price rally is the result of strong industrial demand and its attractive valuations compared to gold.

MCX Gold Rate in India

Gold futures rate on MCX also surged to record high levels on Tuesday. MCX Gold, with 5 December expiry, surged by 0.72% to Rs 1,21,120 per 10 gram. Internationally, the price of gold slipped to around $3,950 per ounce on Tuesday, according to Trading Economics.

The sharp surge in gold rates was in tandem with uncertainty due to US government shutdown. As investors anticipate for another US Fed rate cut, and are unable to fathom the macroeconomic environment due to delay in release of key US data, gold's safe-haven rally is likely to continue in coming days.

Gold Price Outlook

"There is an additional layer to the increased price: the tradition within the festival of buying gold and other precious metals could provide an additional element of ongoing momentum given buying precious metals is perceived as "auspicious" to buy "victorious" assets. Given uncertainty surrounding the geopolitical backdrop, gold remains a compelling hedge asset and could push even further in the weeks ahead," noted Aksha Kamboj, Vice President, India Bullion & Jewellers Association (IBJA) and Executive Chairperson, Aspect Global Ventures.

Silver Price Outlook

Strengthened industrial demand and liquidity will likely support silver rates. "For investors, silver offers higher-beta exposure to the precious‐metals theme, albeit inherently more volatile than gold. Around Dussehra, many investors refer to the convenience of purchasing silver coins and small bars, as festive investments, subtly driving demand among retail buyers. Overall, silver's rally seems to be sustainable in the cycle, especially if inflationary pressures globally and industrial usage continue to support silver prices," stated Kamboj.

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