Silver Climbs ₹300 to Hit Fresh Peak of ₹1,32,300/Kg; Gold Retreats from Record Highs

Silver prices rose by ₹300 to hit an all-time high of ₹1,32,300 per kg while gold prices retreated from record levels, dropping by ₹500, in the national capital on Monday amid firm global trends.

According to the All India Sarafa Association, standard gold of 99.9% purity fell by ₹500 to ₹1,13,300 per 10 grams (inclusive of all taxes) on Monday, snapping its four-day winning streak. On Friday, it had rallied by ₹700 to a record of ₹1,13,800 per 10 grams.

Gold of 99.5% purity also retreated by ₹500 to ₹1,12,800 per 10 grams (inclusive of all taxes). The yellow metal had closed at ₹1,13,300 per 10 grams in the previous market session.

On the other hand, silver advanced by ₹300 to hit a record high of ₹1,32,300 per kilogram (inclusive of all taxes). It had closed at ₹1,32,000 per kg on Friday.

Bullion traders said silver's sustained rise reflects heightened investor interest and optimism over its industrial demand outlook, with a weak US labour market fuelling bets on easier monetary policy.

Silver prices have zoomed ₹42,600 per kilogram or 47.5% in the current calendar year, rallying from ₹89,700 per kg on December 31, 2024.

"Gold traded lower on Monday, exhibiting a moderate bearish bias as traders remained cautious and avoided fresh buying ahead of the highly anticipated Federal Reserve policy meeting," said Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities.

The Fed's two-day meeting is scheduled to begin on September 16 and will conclude on September 17, with a policy decision, followed by Chair Jerome Powell's press conference, set to draw attention amid rising tensions between the US President Donald Trump's administration and Fed officials.

In the global markets, spot gold traded marginally higher at USD 3,645.12 per ounce while silver was quoted at USD 42.20 per ounce.

"Spot gold held firm near USD 3,650 per ounce on Monday, following a fourth consecutive weekly gain, as markets await the outcome of the upcoming US central bank's Federal Open Market Committee meeting.

"Traders are also closely monitoring President Donald Trump's push for an emergency federal appeals court ruling to remove Fed Governor Lisa Cook by Monday, just one day before the Fed convenes," said Kaynat Chainwala, AVP-Commodity Research, Kotak Securities.

Manav Modi, Analyst – Precious Metal -Research, Motilal Oswal Financial Services, said, "Tensions in the Middle East and fresh NATO involvement in Eastern Europe continued to provide a risk premium for gold." Modi further stated that Bank of England and Bank of Japan's policy meetings, focus will also be on the US Retail sales and Industrial production data scheduled this week, which will provide insights on the near-term trajectory of the bullion prices.