New Delhi: Gold prices hovered near record highs on Tuesday while silver surged past the 90 dollar mark for the first time as investors increased bets that the United States central bank could cut interest rates later this year.
Spot gold traded close to its historic peak, supported by strong demand for safe assets amid global economic uncertainty and geopolitical tensions. Market participants said recent signs of easing inflation in the United States have strengthened expectations that the Federal Reserve may begin lowering borrowing costs in the coming months.
Silver outperformed gold, breaking through 90 dollars an ounce in a powerful rally that reflected both safe haven demand and growing interest from industrial users. Analysts said silver has benefited from its dual role as a precious metal and a key material in sectors such as renewable energy and electronics.
Traders noted that lower interest rate expectations tend to support non interest bearing assets like gold and silver, as they reduce the opportunity cost of holding them. Ongoing geopolitical risks and uncertainty around global growth have also pushed investors toward metals as a store of value.
In India, higher global prices kept domestic gold rates elevated, dampening physical demand as buyers remained cautious. However, jewellers and traders said investment interest remained firm, especially as prices continued to show strength.
Market analysts said the rally could extend further if economic data continues to support the case for rate cuts. Some forecasts suggest gold could move above the 5000 dollar level later this year, while silver could test even higher levels if momentum holds.
For now, precious metals remain in focus as investors weigh the outlook for interest rates, inflation and global stability, with gold and silver firmly positioned as preferred safe options in uncertain times.