Gold and silver prices have reached all-time highs in India, driven by global tensions and market uncertainties. As of now, silver prices have hit ₹1,00,040 per kg, while gold has reached ₹80,070 per 10 grams.

Here’s a look at factors contributing to this rally and what investors can expect in the near future.

Global trends fueling prices

On the global stage, gold prices are rising amid escalating conflicts in West Asia and uncertainty surrounding the upcoming US elections.

The geopolitical tensions, coupled with a more cautious approach from the Federal Reserve, have spurred demand for safe-haven assets like gold and silver.

This trend is echoed in the rising demand for silver, which has surged nearly 48% this year.

This has outperformed all industrial metals and energy commodities.

India’s cultural context

As the festive season approaches, the cultural significance of gold and silver in India intensifies.

Sumit Sharma, Founder of Radian Finserv, said, “Gold has long been regarded as a symbol of prosperity, wealth, and good fortune. Investing in gold goes beyond financial security; it’s about embracing tradition.”

This year, the demand for gold jewellery is expected to remain robust, especially during Dhanteras and Diwali.

Colin Shah, Managing Director of Kama Jewelry, said, “The demand for gold usually rises during this time, and elevated prices will not significantly impact festive buying.”

Shah anticipates a strong demand for gold jewellery, attributing this to its cultural value and the continued low interest rates supporting gold prices.

Expectations and investor insights

Market experts project that gold prices may touch $3,000 per ounce internationally and rise domestically, too, in the coming months.

On silver, Renisha Chainani, Head of Research at Augmont, said, “We could see some profit booking before prices head to another psychological level of $36 (₹1,03,000 per 10 grams) for silver.”

For investors, the current environment presents both opportunities and risks.

While gold continues to offer a hedge against uncertainty, analysts caution that profit-booking could lead to some short-term corrections.