Gold reached an all-time high of ₹1,05,000 per 10 grams on MCX on Monday, while silver surpassed $40 per ounce for the first time in 14 years. This rally in precious metals has been driven by potential interest rate cuts by the US Federal Reserve and pressure on the dollar.
Gold Silver Price: On Monday, September 1, 2025, gold and silver prices witnessed a significant surge. Gold hit a record level of ₹1,05,000 per 10 grams on MCX and was at a four-month high in the global market. Meanwhile, silver crossed the $40 per ounce mark, a level not seen in 14 years. According to analysts, the US Federal Reserve's potential interest rate cuts, a weaker dollar, and uncertainties surrounding US tariffs have shifted investor sentiment towards precious metals. The market's focus is now on the upcoming US employment data (Non-Farm Payrolls) this week, which will influence the magnitude of rate cuts.
Fed Officials' Statements Signal Market Direction
Matt Simpson, Senior Analyst at City Index, stated that remarks from Fed official Mary Daly have strengthened the market. Daly clearly indicated her support for interest rate cuts, citing growing threats to the labor market. This statement has further bolstered investor confidence that the Fed might implement a 0.25 percent, or 25 basis point, rate cut in September. According to the CME FedWatch tool, there is approximately 87 percent consensus in the market regarding this possibility.
Dollar Weakness Supports Gold
A significant ruling by a US court has also weakened the dollar. The court declared most tariffs imposed by former President Donald Trump as illegal. This decision has increased pressure on the dollar and provided support to gold. In a scenario of a weaker dollar, investors typically show greater confidence in gold and other precious metals.
Focus Shifts to Payroll Data
The market's next focus is on the upcoming US Non-Farm Payroll data this week. These figures will determine the extent of interest rate cuts the Federal Reserve might implement. If the data turns out to be weak, the size of the cut could increase, offering further support to gold prices. Conversely, if the data remains b, the Fed may opt for a more limited rate cut.
Gold and Silver Performance in Global Markets
On Comex, gold rose by 0.70 percent to $3,540.80 per ounce. Silver was trading with a gain of 1.83 percent at $40.935 per ounce. This marks the first time silver has surpassed the $40 level in 14 years. Other precious metals also saw gains. Platinum increased by 0.9 percent to $1,376.95 per ounce, and palladium rose by 0.8 percent to $1,118.12 per ounce.
Domestic Market Shine
On MCX, gold reached ₹1,05,000 per 10 grams, its highest ever level. Gold prices had experienced fluctuations in recent months, but signals from US policies have injected new life into the market. Silver also showed strength in the domestic market, with prices registering a considerable increase.
