Gold prices surged ₹750 to hit a record high of ₹80,650 per 10 grams on Monday in the national capital. In Calcutta prices of the yellow metal were ₹78,300 per 10 grams, up ₹800 from ₹77,500 on Friday.

Silver prices also skyrocketed ₹5,000 to hit a fresh high of ₹99,500 per kg from the previous close of ₹ 94,500 per kg on Friday, extending the gain for fourth straight day. In Calcutta, silver prices were ₹97,750 per kg on Monday compared to ₹92,400 per kg on Friday, a rise of ₹5,350.

“The price increase for gold were primarily driven by a decline in the dollar, as the US Federal Reserve initiated monetary policy easing with a significant 50 bps interest rate cut. Additionally, ongoing geopolitical tensions contributed to the price rally,” said Kavita Chacko, research head, India, World Gold Council.

“Market report indicates early signs of a resurgence in gold buying due to various ongoing festivals, with demand largely driven by wedding purchases.

“Retailers are actively implementing marketing campaigns to stimulate sales,” she said.

Favourable monsoons and higher crop sowing could boost rural income keeping demand buoyant, Chacko said.

There is also a rising investor interest in Indian gold ETFs backed by the rising gold prices.

According to commodity market experts, the ongoing bullish sentiment in the silver market is primarily driven by industrial demand and gold’s rally.

“On the MCX, silver prices have surged to ₹98,000, supported by Comex Silver climbing to $34 per ounce. A breach of the of the $34-mark has triggered fresh buying interest in silver, as market participants anticipate further gains,” said Jateen Trivedi, VP research analyst - commodity and currency, LKP Securities.

Increasing demand from the electric vehicle sector and photovoltaic applications are also expected to sustain global demand for silver in the medium to long term, Trivedi said.