Gold prices in the state continued their steep upward climb on Monday, touching yet another record. The price of gold rose by ₹300 per gram to reach ₹11,975, while the price of a sovereign (pavan) surged by ₹2,400, bringing it to ₹94,360.
The rally wasn’t limited to standard purity gold alone. 18-carat gold also saw a sharp increase of ₹250 per gram, taking the rate to ₹9,700. Meanwhile, 14-carat gold is priced at ₹7,500 per gram, and 9-carat gold stands at ₹4,865 per gram.
The consistent surge follows a global uptick in gold prices, driven by heightened economic uncertainty and stronger demand for safe-haven assets.
The international price of gold has also surged, touching a record high of $4,166 per ounce. The rally follows US President Donald Trump’s announcement of an additional 100 per cent tariff on Chinese goods, which prompted central banks and global investors to move towards gold as a safe-haven asset.
This shift has triggered an uncontrolled spike in global gold prices, with forecasts suggesting that prices could soon approach the $5,000 per ounce mark if market volatility continues.
The peace agreement between Hamas and Israel, along with Trump’s softened stance towards China, has slightly eased the recent rally, pulling gold prices back from record highs. However, the overall momentum in the market remains strong.
Analysts note that if central banks continue their aggressive gold purchases, the price of the precious metal could soon exceed $5,000 per ounce. Forecasts from major financial institutions support this outlook — Bank of America and Société Générale both expect gold to cross the $5,000 mark by 2026, while Standard Chartered projects a more conservative target of $4,488 per ounce.
Expectations of an interest rate cut by the US Federal Reserve are also influencing global gold prices. Meanwhile, the US government shutdown has entered its 13th day, dealing a significant blow to the economy.
This uncertainty has led to speculation that the Fed may reconsider or delay its planned rate cuts. All eyes are now on Federal Reserve Chair Jerome Powell, who is expected to provide clearer guidance at the NABE annual meeting later today. Investors anticipate that the Fed could lower interest rates by up to 0.25 percentage points in December, depending on how the economic situation unfolds.
Silver too is gaining ground on its safe-haven appeal. The price rose by ₹5 per gram on Tuesday, reaching ₹190, following a ₹10 increase recorded on Monday.
In addition to strong industrial demand, silver prices are also being driven by heightened investment interest amid ongoing global political uncertainties. In the international market, spot silver is trading at $52.49 per ounce, after earlier touching $52.70 per ounce.
At today’s gold rates, even ₹1 lakh is no longer sufficient to purchase a single piece of jewellery. To be precise, a basic ornament — including a minimum 5% making charge, along with tax and hallmarking fees — would now cost around ₹1,02,103.
If the making charge rises to 10%, the total price increases even further. This sharp spike comes just as the festive and wedding seasons have begun, placing both consumers and jewellers under financial strain.