Gold prices surged to a fresh all-time high of $4,110.30 per ounce on Tuesday morning, while silver climbed to a record $52.24 per ounce, driven by safe-haven buying amid ongoing US government shutdown concerns and renewed trade tensions between Washington and Beijing.
The rally in precious metals comes as the US administration announced a 100 per cent tariff hike on select Chinese products, prompting China to threaten restrictions on rare earth exports. Despite signals from US Treasury Secretary Scott Bessent that President Donald Trump remains committed to meeting Chinese President Xi Jinping in South Korea later this month, market uncertainty persists.
“Gold prices continue to hit new records even though tensions in West Asia are easing, the US dollar is getting stronger, and the trade disputes between the US and China are calming down,” said Darshan Desai, CEO of Aspect Bullion & Refinery. “Prices are likely to stay elevated as long as central banks keep buying gold and inflows into gold-backed ETFs remain strong.”
In the domestic market, gold opened sharply higher with a gap-up of ₹2,000, trading above ₹1,23,200 per 10 gram. Festive demand added significant premiums for both gold and silver in Indian markets. Rahul Kalantri, VP Commodities at Mehta Equities Ltd, said gold has support at $4,075-4,050, with resistance at $4,150-4,175, while silver has support at $51.70-51.20 and resistance at $53.05-59.70.
Bank of America recently lifted its 2026 gold forecast to $5,000 per ounce and projected silver at $65, reflecting growing institutional confidence in the metal’s trajectory. The bullish outlook comes amid expectations of further US Federal Reserve rate cuts and persistent global economic uncertainty.
India’s September CPI inflation hit a 98-month low of 1.54 per cent, with October inflation tracking below 1 per cent. Emkay Global suggested this could strengthen the case for a December rate cut by the Reserve Bank of India, potentially boosting domestic demand for precious metals.
Crude oil prices rebounded to trade with support at $58.30-57.70 and resistance at $60.00-60.70, as easing trade concerns provided temporary relief despite ongoing oversupply pressures following the recent OPEC+ output hike.
Published on October 14, 2025