Gold and silver prices soared to multi-year highs on Tuesday, supported by a global rally in precious metals as weak US labour market data bolstered expectations of aggressive Federal Reserve rate cuts.

On the Multi Commodity Exchange (MCX), December gold futures jumped ₹458 or 0.41 per cent to scale an all-time high of ₹1,10,047 per 10 grams. In the spot market, 24-carat gold was priced at ₹10,804 per gram, according to India Bullion and Jewellers Association (IBJA). Silver also touched a 14-year peak in international trade.

The surge followed disappointing US non-farm payrolls data, which showed only 22,000 jobs added in August, far below expectations of 75,000. The unemployment rate rose to 4.3 per cent, raising the likelihood of a 75-basis-point Fed rate cut this year. A weaker dollar index and a decline in US 10-year Treasury yields added further momentum to the rally.

Investors are now awaiting two key US inflation readings that could influence the Fed’s policy decision at its September 17 meeting. Market estimates currently indicate a 91 per cent probability of at least a 25-basis-point cut.

Analysts said the rally was also supported by concerns over tariff-driven inflation and rising industrial demand for silver, particularly from electric vehicles and solar energy sectors.

“On the technical side, gold has support at ₹1,08,040–1,07,640 and resistance at ₹1,08,950–1,09,450, while silver support lies at ₹1,24,750–1,23,950 with resistance at ₹1,26,350–1,27,150,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

Meanwhile, India’s gold exchange-traded funds (ETFs) recorded net inflows of $233 million in August 2025, a sharp 67 per cent rise from $139 million in July, according to World Gold Council data.