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Gold and silver prices witnessed a sharp jump on Tuesday, with both precious metals trading higher on the Multi Commodity Exchange (MCX). Gold prices surged past the ₹1.10 lakh per 10 grams mark, while silver continued its rally to touch ₹1.29 lakh per kilogram.

According to MCX data, October gold futures rose 0.29% to ₹1,10,498 per 10 grams, while silver gained 0.30% to settle at ₹1,29,821 per kilogram. The rally was fueled by a weaker U.S. dollar and disappointing U.S. job market data, which boosted safe-haven demand for bullion.

Global Gold Prices Hit All-Time High

In the international market, gold futures for December delivery climbed to $3,728.32 per ounce, marking a fresh all-time high. Analysts attribute this surge to rising expectations of U.S. Federal Reserve rate cuts, combined with ongoing economic uncertainty worldwide. Safe-haven demand has been the driving force behind bullion’s impressive rally in 2025.

Silver, too, has benefited from the bullish sentiment. While it has not matched gold’s record pace, it remains near its highest levels in over a decade, supported by both industrial demand and investment flows.

Investors Await Fed Reserve Policy Meeting

All eyes are now on the U.S. Federal Reserve’s policy meeting scheduled for Wednesday. Market participants widely expect the Fed to announce a 25 basis point (bps) rate cut.

Recent labor market data has added weight to this expectation. The U.S. unemployment rate rose to 4.3% in August, up from 4.2% in July, while new job additions fell sharply to just 22,000 in August compared to 79,000 in July. Weakening job numbers suggest that the U.S. economy is slowing, raising pressure on the Fed to ease monetary policy.

At the same time, inflation remains a concern. The Consumer Price Index (CPI) rose 2.9% in August, the highest since January and above July’s 2.7%. With the Fed’s long-term inflation target set at 2%, markets believe a modest 25 bps cut is more likely than an aggressive 50 bps cut.

What This Means for Gold Prices

If the Fed signals a continued dovish stance, gold could see further gains in the short term. Analysts note that gold tends to benefit during periods of lower interest rates because it does not yield interest, making it more attractive compared to fixed-income assets.

Moreover, geopolitical uncertainties, central bank buying, and ETF inflows have added to gold’s momentum this year. The metal has already surged more than 40% in 2025, outpacing major equity indices like the S&P 500.

Market Outlook

Traders and investors are closely watching the Fed’s quarterly economic projections and Fed Chair Jerome Powell’s press conference, which may provide crucial insights into the path of future rate cuts.

With inflationary pressures persisting and global growth showing signs of strain, the bullion market remains well-supported. If the Fed confirms a dovish policy outlook, gold may extend its rally, while silver could also continue to strengthen in the near term.

Key Levels to Watch:

• Gold (MCX): ₹1,10,498 per 10 grams

• Silver (MCX): ₹1,29,821 per kilogram

• Global Gold (December Futures): $3,728.32 per ounce