Fed Rate Cut Signals, Inflation Concerns, and Weak Rupee Drive Record Highs in Bullion Futures
Gold prices surged past ₹1.11 lakh per 10 grams, gaining ₹799 in the domestic futures market on Monday, influenced by robust global cues. Investors are anticipating key U.S. inflation data and remarks from several Federal Reserve officials this week for further policy direction.
On the Multi Commodity Exchange (MCX), gold futures for December delivery rose by ₹799, or 0.72 percent, reaching an unprecedented ₹1,11,750 per 10 grams. The most actively traded gold futures for October also saw an increase, climbing ₹761, or 0.69 percent, to ₹1,10,608 per 10 grams. The previous week, these futures had peaked at ₹1,10,666 per 10 grams.
Silver prices also experienced significant gains, with March 2026 delivery contracts rising ₹2,446, or 1.86 percent, hitting an all-time high of ₹1,33,582 per kilogram. Additionally, December delivery silver futures increased by ₹2,473, or 1.9 percent, to a record ₹1,32,311 per kg on the MCX.
Traders noted that the weakening rupee and tepid sentiment in domestic equity markets contributed to rising bullion prices. On the international front, gold futures climbed by $26.82, or 0.72 percent, to $3,732.62 per ounce, having previously reached a lifetime high of $3,744 per ounce.
“Gold prices edged up to hover near record levels, as investors look forward to critical U.S. inflation data and comments from several Federal Reserve officials this week for further policy guidance,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities. Last week, the U.S. Federal Reserve announced its first rate cut of the year and indicated further reductions may follow as the labor market weakens.
“Markets currently imply two more reductions this year, one anticipated in October and another in December, with expectations of ongoing monetary policy easing providing substantial support to bullion, which has surged 40 percent so far this year,” Trivedi remarked.
Gold’s rise has been bolstered by safe-haven demand amid ongoing geopolitical tensions, concerns surrounding the economic ramifications of President Donald Trump’s tariffs, robust central bank buying, and sustained inflows into exchange-traded funds (ETFs).
Meanwhile, December delivery silver futures were trading 2.17 percent higher at $43.88 per ounce. “Silver has shown a more aggressive trajectory than gold, driven by investment flows, demand for solar panels, and industrial usage in electric vehicles, 5G infrastructure, and battery storage,” noted Riya Singh, Research Analyst at Emkay Global Financial Services. She also highlighted that muted supply growth leaves the market susceptible to disruptions.
Pranav Mer, Vice President at EBG – Commodity & Currency Research, JM Financial Services, projected that silver prices in the domestic market could have the potential to test ₹1,40,000 to ₹1,50,000 per kilogram on the commodities exchange.
Published on September 22, 2025
