Gold Prices Hit Record High: 10 Grams Cross ₹1.06 Lakh, Silver Also Gains on September 2

Gold Rate Today (2 September 2025): Precious metals continue their dazzling rally in India, with gold prices touching fresh record highs on Tuesday, September 2. According to market data, the price of 10 grams of 24-carat gold has surged past ₹1,06,200, while 22-carat gold is trading around ₹97,400. The sharp upward momentum that began earlier this week showed no signs of slowing down, as bullion traders reported strong demand in both domestic and international markets.

Silver too has joined the rally, now trading at ₹1,26,100 per kilogram, which is ₹100 higher compared to yesterday’s levels. With investors rushing towards safe-haven assets, both gold and silver have become the center of attraction in global commodity trade.

Why Are Gold Prices Rising?

Several global and domestic factors have contributed to this steep rise in gold prices. The primary driver is the growing expectation that the U.S. Federal Reserve will cut interest rates in the coming months. Lower interest rates usually reduce the returns on fixed-income assets, prompting investors to turn to safe and reliable alternatives like gold and silver.

Adding to the momentum are concerns around U.S. President Donald Trump’s economic policies, ongoing geopolitical tensions, and the weakening Indian rupee against the U.S. dollar. Together, these uncertainties have boosted the appeal of gold as a secure investment option.

For silver, the surge in demand is partly due to industrial needs. Sectors like renewable energy and electronics heavily depend on silver, making it not just a safe-haven investment but also a vital industrial commodity. This dual demand has further strengthened its price movement.

Gold and Silver Rates in Major Indian Cities (2 September 2025) City 22 Carat Gold (₹/10 gm) 24 Carat Gold (₹/10 gm)

Delhi	97,400	1,06,240
Chennai	97,250	1,06,090
Mumbai	97,250	1,06,090
Kolkata	97,250	1,06,240
Jaipur	97,400	1,06,240
Noida	97,400	1,06,240
Ghaziabad	97,400	1,06,240
Lucknow	97,400	1,06,240
Bengaluru	97,250	1,06,090
Patna	97,250	1,06,090

How Are Gold Prices Determined in India?

The daily gold rate in India is influenced by multiple factors. Key determinants include:

• International Market Trends: Global spot gold prices and movements on major exchanges directly affect domestic rates.

• Import Duties and Taxes: Since India imports a large share of its gold, customs duties and government levies play a significant role.

• Currency Fluctuations: The value of the Indian rupee against the U.S. dollar is crucial, as gold is traded globally in dollars.

• Cultural and Seasonal Demand: Festivals, weddings, and traditional occasions consistently fuel domestic demand, often pushing prices higher during peak seasons.

Outlook for Investors

With gold crossing ₹1.06 lakh per 10 grams, many retail buyers may find the metal expensive. However, experts suggest that gold remains a strong hedge against inflation and economic uncertainty. For investors, small systematic investments in gold ETFs or digital gold could be practical alternatives to physical purchases, ensuring both safety and affordability.

Silver, meanwhile, is gaining traction not only as an investment asset but also as a critical component for industries transitioning to renewable energy. Analysts believe that silver’s industrial demand will keep prices buoyant in the long run.

As India heads towards the festive season, the demand for both gold and silver is expected to rise further. With global uncertainties still looming large, precious metals may continue to shine, keeping investors glued to daily price updates.