Mumbai: Gold prices smashed all previous records in the Indian market on Tuesday, surging by over ₹1,400 to a new lifetime high of ₹1,17,788 per 10 grams on the Multi Commodity Exchange (MCX). The explosive rally, which marks a more than 50% gain so far this year, is being fueled by a perfect storm of global uncertainty, a weakening rupee, and growing investor demand for safe-haven assets.
The December gold futures contract jumped ₹1,444 in a single session, marking its fourth consecutive day of gains. The bullish sentiment also propelled the February 2026 contract to a new peak of ₹1,19,052 per 10 grams. Silver was not far behind, with its December futures contract hitting an all-time high of ₹1,44,330 per kilogram. With this powerful momentum, market analysts are now actively debating the possibility of gold reaching the psychological milestone of ₹1,25,000 before the end of 2025.
Why Are Gold and Silver Prices Skyrocketing?
A combination of international and domestic factors is driving the current bull run in precious metals. The primary drivers include:
- Global Economic Jitters: “Precious metals prices climbed to a record high, driven by safe-haven demand amid concerns over a potential US government shutdown and expectations of further Federal Reserve rate cuts,” said Rahul Kalantri, VP Commodities at Mehta Equities Ltd. He noted that failed funding talks in the US have increased market anxiety.
- Weakening US Dollar: The US Federal Reserve has signalled additional interest rate cuts this year. Lower interest rates typically weaken the dollar, making gold, which is priced in USD, more attractive to investors holding other currencies.
- Trade Tensions: The imposition of new US tariffs on various goods has added to the atmosphere of global economic uncertainty, pushing investors towards the safety of gold.
- Depreciating Rupee: A weaker Indian rupee makes importing gold more expensive, which directly translates to higher prices in the domestic market. This benefits investors who already hold gold assets.
What Should Be Your Investment Strategy?
With the market sentiment decisively favouring bullion, experts advise a cautious but optimistic approach.
“The investment mood in India has shifted decisively towards bullion,” notes Aksha Kamboj, Vice President of the India Bullion and Jewellers Association (IBJA). “The upward trend is consistent with gold futures pushing to new highs and receiving inflows into gold ETFs. Analysts recommend that, unless global monetary policy surprises or dollar strength returns, the price of gold should remain in its recent elevated range.”
For traders, Rahul Kalantri provides key technical levels: “In INR, gold has support at ₹1,15,000-₹1,14,680, while resistance is at ₹1,15,550-₹1,15,700. Silver has support at ₹1,42,450-₹1,41,850, while resistance is at ₹1,43,950-₹1,44,800.”
The outcome of the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting, which concluded on October 1, is also being watched closely. While the RBI is expected to hold rates steady, which could offer some support to the rupee, the powerful global factors are likely to remain the dominant force driving gold prices higher in the near term.
