Gold and silver touched a record high on Friday dampening the mood among the consumers, jewllers said. The yellow metal touched a Rs 102388 oer 10 gm, while silver touched Rs 117572 per kg at the retail end.

Darshan Desai, CEO - Aspect Bullion & Refineryn said "Gold prices are on track for another weekly gain as investors await a key inflation report that could influence the US Federal Reserve’s decision on interest rates next month. If inflation comes in hotter than expected, it could weigh on gold as it could limit the Fed’s flexibility to cut rates. However, ongoing concerns about the Fed’s independence and a weaker US dollar are likely to offer support for gold at lower levels."

Gold and Silver prices have touched record high prices trading above in domestic markets, supported by USDINR depreciation, safe-haven demand on concerns that political pressure on the Federal Reserve could accelerate interest rate cuts.

"Markets are mostly pricing in a 25 basis point reduction in September due to concerns that political pressure on the Federal Reserve could hasten interest rate cuts.

Following updated data that indicated the US economy grew marginally faster in Q2, investors are turning their attention to the US personal consumption report later today, which is expected to accelerate and raise concerns about inflation," said Renisha Chainani, Head - Research at Augmont.

Commenting on the futures market, Chainani said that gold October futures are expected to continue their upside momentum towards $3485 (Rs 102,500), if it sustains above $3445 (Rs 101,500). "As Silver September Futures have broken its range and sustained above $38.80 (Rs 116,000), upside momentum can swing prices towards a new high of $40 (Rs 120,000).