What is the story about?
Gold, Silver Rate Today: Gold and silver prices soared on Thursday, supported by the US Federal Reserve’s decision to cut interest rates by 25 basis points
and a rise in safe-haven demand. As of 10:05 am, gold was trading at Rs 1,30,548, up 0.6 per cent (Rs 752). “The impact of the Fed rate cut should be directly visible,” analyst Bhupesh Sharma told ET Now Swadesh, adding that the rate cut is supporting gold and silver prices.
Fed cuts rates amid economic uncertainty
The US Federal Reserve announced a 25 basis points cut in the target range for the benchmark rate, bringing it to 3.50 per cent – 3.75 per cent on Wednesday. Policymakers cited gaps in economic data caused by the recent government shutdown and considered competing views on risks facing the economy.Gold typically strengthens when interest rates fall, as lower yields reduce the opportunity cost of holding non-yielding assets.
Silver hits record high
Silver outperformed gold, rising nearly 2 per cent to Rs 1,92,320, and even touched a record level of Rs 1,93,452 earlier in the session.“Yes, there is speculation and froth, but if we look at inventory levels in Shanghai, they are at 2014 lows. Even at CME and LME, inventories are extremely tight. Analysts expect the deficit in 2026 could be double the five-year average,” said Bhavik Patel, Senior Research Analyst at Tradebulls Securities.
He further added that the recycled silver supply has slowed. “Earlier, recycled silver used to come into the market, but now even that supply is drying up because prices have risen sharply. Demand is strong, supply is in deficit, and that is why the rally is not stopping,” Patel said.
Geopolitical tensions add to precious metal demand
On the geopolitical front, Mexico will impose new tariffs on goods from Asian countries, including India and China, to protect local industries. Gold is often seen as a hedge against geopolitical conflicts, trade wars, inflation, and other uncertainties.Weak rupee supports domestic prices
Adding further support to precious metals, the rupee depreciated by 17 paise to 90.11 against the US dollar in early trade on Thursday. A weaker rupee typically boosts domestic gold prices by making imported bullion more expensive.Check city-wise prices
| City | Price/10g (24 carat) |
| Chennai | 1,30,510 |
| Bangalore | 1,30,540 |
| Hyderabad | 1,30,470 |
| Mumbai | 1,30,460 |
| Kolkata | 1,30,440 |
| Lucknow | 1,30,610 |
| Chandigarh | 1,30,540 |
| Delhi | 1,31,200 |
| Noida | 1,30,610 |
| Gurgaon | 1,30,600 |
