Precious metals rally: Gold prices break records, jumps to ₹90,655 per 10g; Silver follows suit

Gold prices jumped to all-time high of ₹90,655 per 10 grams in Ahmedabad on Wednesday, as per sources. Gold 99.9% (24K) purity closed at Rs 87,991 per 10 grams in the previous trading session on MCX on 17 March. In the international market, prices hovered around $2,987.73 per troy ounce (around 1:38PM IST).

Meanwhile, silver closed at ₹1,00,738 per kg in the previous closing session on the MCX. The price hovered around $33.81 per troy ounce in the international market.

Gold prices rose to an all-time high last week breaking though the key $3,000 level with the safe haven supported by President Donald Trump’s fresh tariff threats, while soft U.S. inflation prints further aided sentiment."

Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial services Ltd., said that this supported silver as well, which marked an all-time high on domestic front, breaching ₹1 lakh. "Escalating trade tensions and economic indicators led to a more than 3% rally in both Gold and Silver last week President Donald Trump threatened 200% tariffs on European alcoholic beverages, including wines and champagnes, in retaliation to the European Union's decision to impose a 50% levy on American whiskey. The EU's move was a response to Trump's recent 25% tariffs on imported steel and aluminium," said Modi.

On data front both the CPI and PPI indicated weaker-than-expected inflationary pressures, reinforcing expectations of potential interest rate cuts by the Federal Reserve later this year. The Federal Reserve is scheduled to meet on March 18-19 to deliberate on interest rate policy.

According to Axis Mutual Fund report:

Gold prices have doubled in the past five years, reaching all-time highs. In 2024, total gold demand hit a record 4,974 tons, driven by central bank purchases exceeding 1,000 tons for the third consecutive year.

Silver prices rose 15% in 2024 and another 11% in early 2025. Strong demand from solar panels, electronics, and EV batteries, coupled with increasing investor interest, has driven imports to record levels.

The gold-silver ratio stands at 88.36, reflecting silver’s relative undervaluation. Silver remains more volatile than gold, often amplifying gold’s price movements in both directions, per the Axis Fund report.

Inflation fears, geopolitical tensions, and economic instability have fueled gold’s demand. The ongoing U.S.-China trade war and global conflicts continue to support high gold prices.

The U.S. budget resolution extending 2017 tax cuts could increase fiscal deficits, supporting higher gold prices. However, if the U.S. Federal Reserve maintains stable interest rates, it may slow down the gold rally, per the Axis Fund report.

If you want to zero in on gold investing, it can be done through various methods. For instance, one can opt for physical gold, like coins, bars, or jewellery. It offers tangible assets but requires secure storage. Gold ETFs (Exchange-Traded Funds) provide an easier, paper-based alternative, tracking gold prices without the hassle of storage. Sovereign Gold Bonds (SGBs), issued by governments, offer interest along with price appreciation. Gold mutual funds invest in gold-related assets and provide diversification. Digital gold allows small investments via fintech platforms. Lastly, gold mining stocks offer exposure to companies extracting gold but can be risky. Therefore, before investing, assess market trends, liquidity, and associated costs to align with financial goals.