This surge is fueled by expectations of US Federal Reserve interest rate cuts and ongoing geopolitical tensions, particularly between the US and China
New Delhi: Gold prices in India surged by Rs 1,185 on Thursday, reaching an all-time high of Rs 1,28,395 per 10 grams in the domestic futures market. This rise comes as the yellow metal also crossed USD 4,250 per ounce globally, fuelled by expectations of interest rate cuts by the US Federal Reserve and ongoing geopolitical tensions.
On the Multi Commodity Exchange (MCX), gold futures for December delivery climbed by Rs 1,185, or 0.93 percent, touching a record Rs 1,28,395 per 10 grams. The February 2026 contract also rose sharply by Rs 977, or 0.76 percent, reaching Rs 1,29,380 per 10 grams.
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Darshan Desai, Chief Executive Officer of Aspect Bullion and Refinery, explained that gold prices remain elevated due to expectations of further rate cuts from the US Federal Reserve and continuing tensions between Washington and Beijing. He added that the futures market anticipates a significant rate cut later this month or in December, which could boost gold prices even further.
“Gold is also likely to remain a safe-haven asset, supported by concerns over rising and potentially unsustainable debt levels, a weakening US dollar, and continued buying by central banks,” Desai said.
How is silver performing alongside gold?
Silver futures also reached record highs on the MCX. The white metal for December delivery rose by Rs 2,454, or 1.51 percent, to Rs 1,64,660 per kilogram. Similarly, the March 2026 contract climbed by Rs 2,699, or 1.6 per cent, to Rs 1,64,958 per kilogram, marking its fourth consecutive session of gains.
The dollar index, which measures the strength of the US currency against a basket of six other currencies, was down 0.17 per cent at 98.63, supporting higher bullion prices.
What is driving the international market?
Globally, Comex gold futures hit a record of USD 4,254.80 per ounce. Jigar Trivedi, Senior Research Analyst at Reliance Securities, said that gold prices have surged due to safe-haven demand and expectations of a more dovish US monetary policy.
Trivedi noted that US Federal Reserve Chair Jerome Powell’s recent comments highlighted signs of a weakening labour market, prompting investors to almost fully price in a 25 basis points rate cut at this month’s meeting, with another likely in December.
Silver futures mirrored gold’s gains internationally. The metal for December delivery rose to a record USD 52.86 per ounce.
Are geopolitical tensions adding pressure to metals markets?
Recent warnings from US officials regarding China’s tighter restrictions on rare earth exports, along with potential countermeasures from Washington, have added to global uncertainty. US Treasury Secretary Scott Bessent mentioned that Washington could consider imposing export limits or tariffs on China’s imports of Russian oil if coordinated with European partners.
Analysts said that strong investor inflows into precious metals have pushed both gold and silver to new highs this week. They added that any confirmation of a Fed rate cut could take bullion prices to fresh record levels in the coming weeks.
PTI inputs
Published: 16 Oct 2025, 12:45 pm IST
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