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.