Gold and silver prices reached unprecedented highs in the domestic futures market on Monday, reflecting significant gains in global markets driven by expectations of US Federal Reserve rate cuts and a weakened dollar, which boosted investor sentiment.
On the Multi Commodity Exchange (MCX), October delivery gold futures increased by ₹1,204, or 1.06 percent, reaching a record high of ₹1,14,992 per 10 grams. Meanwhile, the December contract for gold futures rose by ₹1,034, or 0.9 percent, to a new peak of ₹1,15,925 per 10 grams. Last week, gold futures had surged by ₹4,188, or 3.77 percent, closing at ₹1,14,891 per 10 grams on Friday.
“Gold prices have been shining for quite some time, and the past week saw gold prices touching new highs in the domestic as well as international markets,” said Prathamesh Mallya, DVP-Research, Non-Agri Commodities and Currencies at Angel One. He indicated that the rally appears to show no signs of slowing down, creating a dilemma for investors about whether to enter the market or secure profits at these elevated levels.
Mallya added that various factors, including tariff levies, the Russia-Ukraine war, and US-China trade tensions, have been driving liquidity and momentum in gold prices recently.
Silver also experienced significant gains on Monday. The December delivery contract for silver futures jumped by ₹2,290, or 1.61 percent, to reach an all-time high of ₹1,44,179 per kilogram. The March 2026 contract for silver futures rose by ₹2,559, or 1.79 percent, reaching a fresh peak of ₹1,45,817 per kilogram on the MCX. In the previous week, silver futures had surged by ₹12,051, or 9.28 percent, closing at ₹1,41,889 per kilogram.
Globally, bullion prices continued to climb, with December gold futures rising nearly 1 percent to achieve a record high of $3,837.72 per ounce. Silver prices also climbed over 1 percent, reaching $47.39 per ounce.
“Gold prices climbed to a record high, driven by growing expectations of further US rate cuts and a weaker dollar,” stated Jigar Trivedi, Senior Research Analyst at Reliance Securities. He noted that recent US Personal Consumption Expenditures inflation data aligned with market expectations, bolstering confidence that the Federal Reserve may continue to ease monetary policy in the coming months.
The dollar index, which measures the currency against a basket of six others, was trading 0.18 percent lower at 97.97, providing additional support for precious metals. “Traders are currently pricing in a 90 percent chance of a rate cut in October and about a 65 percent likelihood of another cut in December,” Trivedi explained. He also mentioned that investors are closely watching the risk of a potential US government shutdown, which could delay the release of vital labor market data and complicate the Fed’s decision-making process.
Compounding global uncertainty, US President Donald Trump announced last week a new round of tariffs on imported drugs, trucks, and furniture effective October 1, further clouding the economic outlook. Market experts suggest that the combination of anticipated monetary easing, geopolitical tensions, and trade-related risks is likely to keep bullion prices elevated in the near term.
Published on September 29, 2025.
