On Monday, October 13, gold prices commenced trading at notably elevated levels. Gold futures were priced at Rs 1,23,286 per 10 grams, while silver was valued at Rs 1,51,050 per kilogram. The increase was propelled by a resurgence in safe-haven demand in light of escalating U.S.-China trade tensions. Simultaneously, wider economic and political uncertainties, coupled with anticipations of additional U.S. interest rate reductions, provided further support. Today’s gains have positioned both precious metals near their lifetime highs, bolstered by anticipations of U.S. rate cuts, consistent central bank purchases, and ongoing safe-haven demand in the face of global economic uncertainties.
In the international market, the yellow metal surged to a fresh record above 4,060 an ounce after logging its eighth straight weekly advance on Friday. Silver remained close to record levels as a significant short squeeze in London and escalating U.S.-China trade tensions unsettled markets. In the interim, apprehensions regarding possible White House tariffs on additional precious metals have propelled platinum and palladium to significant increases. The current U.S. government shutdown, which has now extended into its third week, has resulted in the postponement of crucial economic data releases, thereby heightening investor caution and contributing to market volatility.
The price of non-yielding bullion has surged by 54% year-to-date, driven by geopolitical uncertainties, significant acquisitions by central banks, substantial inflows into exchange-traded funds, anticipations of interest rate reductions in the U.S., and economic apprehensions related to tariffs. The accumulation by central banks and a worldwide transition towards safe-haven assets, enabled by ETFs, persist in supporting the prices of gold and silver.
“The sustained momentum in gold is supported by concerns regarding a U.S. government shutdown and the increasing theme of ‘de-dollarization,’ which continue to enhance safe-haven demand,” stated Jateen Trivedi. However, analysts cautioned that profit-taking and emerging geopolitical clarity — including President Trump’s recent announcement of a ceasefire between Israel and Hamas — could challenge the resilience of the current rally.