crosses Rs 1.1 lakh, silver at 13-yr peak: What it means for investors

For Indian investors, gold remains a portfolio hedge while silver offers dual exposure to safe-haven flows and industrial growth.

Gold prices in India surged to  Rs 1.10 lakh per 10 grams on Tuesday, aligning with international market trends. A report by Axis Mutual Fund notes that precious metals are shining brighter than ever in 2025, with gold prices hovering near record highs of $3,475/oz and silver at $40/oz, its strongest level in 13 years. Both metals have surged 35–45% year-on-year, outpacing most asset classes, as global investors rush toward safe havens amid economic uncertainty, a weaker U.S. dollar, and expectations of lower interest rates.

 

Why Gold Prices Are Rising

 

Weaker U.S. Dollar

 

The Dollar Index has slipped to 97.7, down from 110 in February 2025.

 

A weak dollar makes gold cheaper for investors holding other currencies.

 

(Sources: Bloomberg, Reuters, US Bureau of Labor Statistics)

 

Rate-Cut Expectations

 

U.S. inflation stood at 2.7% YoY in July, in line with forecasts.

 

Softer data has raised market bets on the Fed cutting rates by 60 bps by year-end, with an 80% chance of a September cut.

(Source: CME FedWatch, FactSet)

 

Safe-Haven Demand

 

Geopolitical tensions, trade wars, and U.S. political pressure on the Fed are driving safe-haven flows into gold.