October 17, 2025 — The Indian commodity market has entered record-breaking territory as gold and silver futures on the Multi Commodity Exchange (MCX) hit fresh all-time highs. Gold futures surged past the ₹1.32 lakh per 10 grams mark, while silver also climbed to a new lifetime peak, reflecting exceptional bullish momentum ahead of India’s festive season.
The surge in precious metals is being driven by a combination of global economic uncertainty, rate cut expectations, and strong safe-haven demand from both retail and institutional investors.
Gold Prices Scale New Heights
Gold’s latest rally has pushed it well beyond its previous resistance levels. The metal’s rapid rise shows that investors are increasingly turning to bullion as a safe store of value during volatile times.
Analysts attribute this record surge to several key factors:
- Geopolitical tensions: Ongoing global conflicts and trade disputes have prompted investors to seek safety in gold.
- US Federal Reserve outlook: Growing expectations that the Fed will cut interest rates later this year have weakened the dollar and boosted gold’s appeal.
- Weakening US Dollar: The fall in the US Dollar Index makes gold cheaper for international buyers, pushing up demand.
- Central bank accumulation: Major central banks, especially in Asia, continue to diversify reserves by buying gold, adding long-term support to prices.
The combined effect of these global drivers has sent MCX gold futures soaring to levels unseen in Indian trading history.
Silver Follows Suit with a Powerful Dual Rally
Silver prices have mirrored gold’s stunning performance, marking a new all-time high on MCX. However, silver’s momentum is powered by both safe-haven buying and industrial demand.
Apart from being a precious metal, silver plays a vital role in solar panels, semiconductors, and electric vehicles. With clean energy investments rising globally, industrial demand for silver has remained robust.
Market experts also report a tight physical supply in key bullion markets, which has created a supply squeeze. This shortage has led to higher premiums and added more fuel to the ongoing price rally.
Festive Demand Adds Domestic Boost
India’s cultural and seasonal factors have amplified this rally. The surge comes right before Dhanteras and Diwali, when gold and silver purchases are considered auspicious.
Jewellers and bullion traders expect a sharp rise in physical demand, further strengthening market sentiment. The festive buying trend, combined with high investor interest in precious metals, is helping sustain prices near record highs.
Market Outlook: Bullish but Volatile
While momentum remains strong, experts warn traders to remain cautious. The recent sharp gains have increased volatility and profit-booking risks in the short term. However, the long-term fundamentals still support a bullish outlook.
Given the combination of geopolitical tensions, inflation worries, and monetary easing expectations, both gold and silver are expected to remain key safe-haven assets for investors in the coming months.
