1 Sep 2025 : The economic conditions in India and around the world this year have pushed gold and silver prices to entirely new heights. If you are wondering why gold prices surged in August and what is expected in September, this report is for you.
What was the trend in August?
In August 2025, gold and silver prices in Indian markets saw a massive rise. Interestingly, this increase was not only due to domestic demand or the wedding season but was also driven by international economic activities, a decline in the stock market, and the rupee’s weakness against the dollar.
- At the beginning of August, gold was around ₹98,769 per 10 grams.
- By the end of the month (August 29), it had risen to ₹1,03,824 per 10 grams.
- That means a jump of ₹5,055 per 10 grams in just one month!
Impact of stock market fall
There is often an inverse relationship between the stock market and gold prices. In August, India’s key indices — Sensex and Nifty — both fell by around 1.3%.
- Sensex dropped to 79,809.65.
- Nifty 50 closed at 24,426.85.
Additionally, foreign investors pulled out nearly ₹35,000 crore from Indian stock markets in August. This created a negative market sentiment, pushing investors toward gold as a safe option, which further boosted prices.
International factors also played a role
The U.S. recently imposed tariffs on some goods, escalating global trade tensions.
- Global economic uncertainty increased.
- The Indian rupee hit historic lows against the U.S. dollar.
- These international indicators collectively influenced gold and silver prices in Indian markets.
What’s expected in September?
Market analysts believe that gold prices are likely to remain strong in September 2025 due to several reasons:
- Rupee depreciation: As long as the rupee stays weak, gold prices will remain under pressure.
- U.S. tariff policy: Ongoing trade uncertainty makes gold a safe-haven asset.
- Domestic festive demand: The festival season (Navratri, Dussehra, Karva Chauth, Diwali) starting in September-October will boost gold consumption.
Experts say that if stock market volatility and foreign capital outflows continue, gold prices may even cross ₹1,05,000 per 10 grams.
Silver’s strong momentum
While gold shone, silver was not far behind. In August, silver prices also saw a sharp surge. Silver is giving investors good returns in a short time. Currently, silver is trading around ₹1,35,000 per kg, which is among its highest levels ever.
Summary : That’s the projected gold rate in India for September: 24-carat gold at about ₹1,02,390 and 22-carat at ₹93,790 per 10 g.