Gold surges ₹1,185 to record ₹1.28 lakh/10g, breaches $4,250 an ounce in global markets

Gold prices on Thursday (October 16, 2025) surged by ₹1,185 to scale an all-time high of ₹1,28,395 per 10 grams in the domestic futures trade, while the yellow metal crossed the $4,250 per ounce globally, driven by expectations of interest rate cuts by the U.S. Federal Reserve, and persistent geopolitical tensions.

On the Multi Commodity Exchange (MCX), gold futures for December delivery climbed by ₹1,185, or 0.93%, to reach a new peak of ₹1,28,395 per 10 grams.

Extending the gains for the fifth consecutive session, the February 2026 contract for the yellow metal futures also rose sharply by ₹977, or 0.76%, to touch an all-time high of ₹1,29,380 per 10 grams.

“Gold prices remain elevated at record levels, driven by expectations of more interest rate cuts from the U.S. Federal Reserve [Fed] and ongoing tensions between Washington and Beijing,” Darshan Desai, chief executive officer of Aspect Bullion & Refinery, said.

He added that the futures market now anticipates a larger rate cut from the Fed, possibly later this month or December, which could give gold prices another boost.

“Gold is also likely to remain a safe-haven asset, supported by concerns over rising and potentially unsustainable debt levels, a weakening U.S. dollar, and continued buying by central banks,” Mr. Desai said.

Tracking yellow metal, silver prices also surged to new peaks on the MCX. The white metal for December delivery appreciated by ₹2,454, or 1.51%, to hit a record ₹1,64,660 per kilogram.

Similarly, the March 2026 contract extended its winning streak for the fourth consecutive session by rising ₹2,699, or 1.6%, to hit a fresh peak of ₹1,64,958 per kg on the commodities bourse.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.17% to 98.63, further aiding the appeal for bullion prices.

In the international market, Comex gold futures continued their upward march by climbing to a record of $4,254.80 per ounce.

“Gold prices rose above $4,250 per ounce on Thursday, continuing its rally to a new record, driven by safe-haven demand and growing expectations of a dovish U.S. monetary policy,” Jigar Trivedi, senior research analyst at Reliance Securities, said.

Mr. Trivedi added that the U.S. Federal Reserve Chair Jerome Powell’s recent remarks highlighted signs of a weakening labour market, which prompted investors to nearly fully price in a 25 basis points rate cut at this month’s meeting, with another likely in December.

Silver futures also followed suit in the global markets. The metal for December delivery rose to hit a lifetime high of $52.86 per ounce.

On Wednesday, U.S. officials criticised China’s tightened restrictions on rare earth exports, warning they pose risks to global supply chains and hinting at potential countermeasures from Washington.

Meanwhile, U.S. Treasury Secretary Scott Bessent said that Washington could consider imposing export limits or tariffs on China’s imports of Russian Oil if coordinated with European partners, a move that could further strain trade relations and add to market uncertainty.

Analysts said both gold and silver have been on a record-setting spree this week, driven by robust investor inflows into precious metals. Any confirmation of a rate cut by the Fed would likely push bullion prices to fresh records in the weeks ahead.

Published – October 16, 2025 12:51 pm IST