Gold, silver prices hit record highs; here are fresh price targets for festive season

Gold and silver prices reached unprecedented highs in the MCX futures market on Monday, driven by the anticipation of a rate cut by the US Federal Reserve and ongoing uncertainties surrounding US President Donald Trump's tariff policies.

Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, "Gold traded firm with gains of Rs 1,000 at Rs 1,05,000, supported by rupee weakness and trade-related uncertainty. The rally was further fueled after the US Appeals Court declared Trump’s tariffs illegal, sparking a safe-haven bid. On Comex, gold surged $30 to $3,475, lifting MCX prices in tandem. Near term, strong support is seen at Rs 1,02,500, while resistance stands at Rs 1,07,000. A decisive break above could open the path toward higher highs, while any dip toward support is likely to attract buying interest."

On the MCX, Gold October 3 contracts surged 2 per cent to a new high of ₹1,05,937 per 10 grams, while Silver December 5 contracts achieved a record ₹1,24,214 per kg, reflecting a nearly 2 per cent increase.

 Rahul Kalantri of Mehta Equities stated, "In INR, Kalantri said gold has support at ₹1,03,340-1,02,940 while resistance is at ₹1,04,450-1,04,750. Silver has support at ₹1,19,450-1,18,850 while resistance at ₹1,20,950, 1,21,650." As investors navigate these challenging economic conditions, analysts continue to monitor the potential impact of a US Fed rate cut and global trade tensions on the precious metals market.

Aksha Kamboj, Vice President, India Bullion & Jewellers Association (IBJA) and Executive Chairperson, Aspect Global Ventures said, "Gold and silver have shot to all-time highs on the MCX, supported by continuous safe-haven demand in the wake of tariff worries, a depreciating rupee, and increasing hopes of US rate cuts. Analysts expect further traction in the near term: gold is expected to face resistance in the short term as focus will be on US macroeconomic data and Federal Reserve policy cues. Silver's rally is particularly persuasive led by industrial consumption, rupee weakness, and hopes of Federal easing with forecasts aiming for Rs 1,60,000/kg by end-2026 and Rs 2,00,000/kg by 2028. Internationally, spot gold is targeting levels around $3,600, whereas silver is aiming for around $42. A correction in the bullion rally, however, cannot be dismissed. With momentum strong, bullion should continue to be an essential holding for investors managing geopolitical and monetary risks."

Renisha Chainani, Head - Research at Augmont said, "If macroeconomic risks remain elevated, gold prices could target $3,700 (Rs 1.10 lakh) in the next few weeks in September and $4000 (Rs 1.20 lakh) in the next few months by the end of 2025. Silver, after breaking $40 resistance, can continue its northward journey towards $43 (Rs 1.30 lakh) in the next few weeks in September and $45 (Rs 1.35 lakh) in the coming few months before 2025 ends."