Summary of this article
Gold Price on MCX hit fresh record high at Rs 1,06,199 per 10 grams
The rally also spilled over to Sovereign Gold Bonds in the secondary market
Macro data including inflation, unemployment, wage growth among others are key to watch
Gold prices climbed to fresh record highs on September 3, 2025, extending their winning streak to the 11th consecutive session.
On the Multi Commodity Exchange (MCX), gold futures surged as much as 0.38 per cent to hit their record high of Rs 1,06,199 per 10 grams. In the international market, Comex Gold jumped up 0.68 per cent to its new record high of $3,616.90 an ounce.
SGBs Surge Up To 9.8% – Here’s Why
The rally also spilled over to Sovereign Gold Bonds (SGBs) in the secondary market, where several SGB series posted unusually sharp gains. For instance, SGBMAY26 jumped as much as 9.82 per cent, SGBDC27VII climbed 5.78 per cent, and SGBSEP31II advanced over 4 per cent today.
It is worth noting that the Reserve Bank of India (RBI) stopped issuing fresh series after the last tranche in February 2024. However, investors can still buy SGBs through secondary markets. With no fresh SGB series in sight, investors are now left with the secondary market as the only route to buy these bonds.
Prathamesh Mallya, DVP Research Non-Agri Commodities & Currencies, Angel One, concurs with this, saying, “Buying SGBs from the secondary market is the only option left for those investors who want to invest in these instruments, as primary market issuances are stopped by the government.”
He added that SGBs generally mirror spot gold prices of 999 purity, and the recent spike reflects stronger investor interest in this mode of investment. “SGBs offer tax exemption and offer interest and are considered one of the best ways of investing in gold. Hence the surge in prices,” Mallya explained.
Why Gold Prices Are Shining
Ajit Mishra, senior vice president of research at Religare Broking, said, “Gold has been inching gradually higher, driven by safe-haven demand, optimism over the US Federal Reserve’s rate cut expectations, and ongoing geopolitical and economic uncertainties.”
The chances of a September rate cut have increased. After the very first signal came from Federal Reserve Chair Jerome Powell, during his speech at Jackson Hole, several other Fed officials have made remarks, pushing for a rate cut.
San Francisco Fed President wrote in a short social media post on August 29 that, “It will soon be time to recalibrate policy to better match our economy.” She added that tariff-related price increases “will be a one-off.” She further said, “It will take time before we know that for certain. But we can’t wait for perfect certainty without risking harm to the labour market.”
A day earlier, on August 28, Federal Reserve Governor Christopher Waller told the Economic Club of Miami, "Based on what I know today, I would support a 25 basis point cut" at the upcoming September 16-17 meeting of the rate-setting Federal Open Market Committee.
Adding to gold’s rally is the uncertainty around US President Donald Trump’s tariffs. A US court last week ruled that Trump’s trade tariffs are illegal, though they will remain in effect until October 14.
Gold Price Outlook
Mishra recommended that, although the gold market appears technically overbought, the underlying fundamentals still point towards further gains. He advised investors to consider booking some profits and wait for a meaningful correction before making fresh allocations.
He added that attention in the coming weeks will be on global trade trends, especially US–China relations, as well as any diplomatic developments that could sway sentiment. Key U.S. economic data, including inflation readings, producer prices, non-farm payrolls, unemployment, and wage growth, will also play an important role in determining gold’s trajectory from here.
