Gold and silver prices soared to new all-time highs in India on Monday, driven by growing expectations of U.S. interest rate cuts in the coming months, which could weaken the dollar. Heightened geopolitical tensions and tariff-led trade concerns further fueled the rally, while robust industrial demand lent additional support to silver, analysts said.

In global markets, gold surged past the $3,750/oz mark, setting a fresh record and edging closer to $3,800, while silver spiked above $44/oz, its highest level in 14 years.

Mirroring the global uptrend and compounded by a weaker rupee, domestic futures hit record levels on MCX: October gold futures neared Rs.1.12 lakh per 10 gm, and December silver futures touched Rs.1.33 lakh per kg, marking historic peaks for both precious metals.

Traders said the momentum is likely to continue in the near term, with festive demand in India potentially adding a further boost to gold consumption. Silver, already buoyed by industrial demand, could see continued investor interest as both a commodity and a hedge.

The US Fed’s 25 basis points rate cut and prospects of additional easing by year-end have boosted sentiment for gold, while a subdued dollar index and weaker rupee added momentum. Persistent central bank purchases, strong ETF inflows, and safe-haven buying have further fuelled the precious metals’ strength,

Industry analysts remain cautiously optimistic, highlighting that while global uncertainties and dovish U.S. monetary expectations are currently propelling prices, sustained volatility cannot be ruled out. Investors are advised to track the upcoming U.S. Federal Reserve policy meetings, global inflation data, and geopolitical developments, all of which will be key in determining the trajectory of precious metals.