Gold prices surged sharply on Friday, adding fresh momentum to the ongoing rally in precious metals. In the national capital, gold jumped by ₹900 to reach ₹1,06,970 per 10 grams, pushing it closer to record-breaking levels. According to traders, this rise was largely supported by renewed buying activity from stockists and an increasingly firm global trend that reflects heightened investor interest.
As per data from the All India Sarafa Association, gold of 99.5 percent purity also advanced by ₹900 to ₹1,06,100 per 10 grams, inclusive of all taxes, compared with its previous close of ₹1,05,200. Silver, however, remained unchanged at ₹1,25,600 per kilogram, showing stability despite the surge in gold. The divergent movement between the two metals underscores how gold continues to benefit more strongly from safe-haven demand.
Market analysts pointed out that the rally was fuelled by expectations surrounding the U.S. Federal Reserve’s upcoming policy meeting on September 16–17. Following a weaker-than-expected employment report released earlier this week, investors are increasingly convinced that the Fed will opt for an interest rate cut. Such a move would lower yields on fixed-income assets, thereby driving investors toward non-yielding safe-haven assets like gold.
Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, noted that gold’s upward trajectory on the last trading day of the week was backed not only by rate-cut expectations but also by geopolitical uncertainties. He highlighted that the ongoing deadlock in peace negotiations between Russia and Ukraine has further strengthened gold’s appeal as a secure investment amid global instability.
On the currency front, the Indian rupee weakened further, closing at a record low of ₹88.27 against the U.S. dollar, down 15 paise. The decline was attributed to continuous outflow of foreign funds combined with growing concerns over potential U.S. tariffs on Indian goods. Analysts explained that a weaker rupee makes gold more expensive in domestic markets, adding an extra push to local prices.
In global markets, spot gold edged higher to trade at USD 3,551.44 per ounce, staying within close reach of its all-time high of USD 3,578.80 per ounce touched earlier in the week. Spot silver also gained modestly by 0.22 percent to trade at USD 40.76 per ounce. The international movement mirrored the optimism in Indian markets, suggesting that gold’s bullish sentiment is part of a broader global pattern.
Praveen Singh, Head of Commodities and Currencies at Mirae Asset ShareKhan, pointed out that the U.S. nonfarm payroll report due later in the day would be a crucial data point. He explained that the Federal Reserve is now paying greater attention to labor market health rather than focusing exclusively on inflation. A weak jobs report, he added, would reinforce expectations of consecutive rate cuts, which in turn could keep gold prices elevated in the coming weeks.
