Gold prices soared to fresh record highs on Tuesday, breaching the ₹1,10,000 mark as investors flocked to the safe-haven asset amid rising global geopolitical tensions and expectations of a US Federal Reserve rate cut this week.

According to the India Bullion and Jewellers Association (IBJA), 24-carat gold was priced at ₹10,951 per gram at 10:17 a.m. Earlier in the day, the metal touched ₹1,10,650 per 10 grams, sharply higher than Monday’s ₹1,09,820.

On the global front, spot gold traded at $3,679 an ounce, just below Monday’s all-time high of $3,685, World Gold Council data showed.

Analysts attributed the surge to a mix of geopolitical uncertainty, weakness in the US dollar, and heightened expectations of a 25-basis-point Fed rate cut on September 17. “Both gold and silver are likely to remain buoyant this week, supported by safe-haven flows and strong industrial demand,” said market experts.

City-wise gold prices were quoted at ₹1,10,260 per 10 gm in New Delhi, ₹1,10,450 in Mumbai, ₹1,10,540 in Bengaluru, and ₹1,10,310 in Kolkata, with Chennai recording the highest at ₹1,10,770.

Silver too rallied, with October 5 futures on the Multi Commodity Exchange (MCX) trading at ₹1,29,452 per kg. Analysts linked the momentum to rising industrial demand from the electric vehicle and solar sectors.

Meanwhile, India’s gold exchange-traded funds (ETFs) continued to attract inflows, recording $233 million in August 2025 — up 67% from $139 million in July, according to World Gold Council data.

In macroeconomic terms, gold’s steep rise has also fed into inflationary pressures. With prices up 40% year-on-year in August, the yellow metal contributed nearly 43 basis points to core CPI, official estimates noted.