Gold prices surged to unprecedented levels on Friday, October 16, 2025, with domestic futures crossing ₹1,32,000 per 10 grams, reflecting strong safe-haven demand as investors navigated global economic uncertainties and anticipated potential monetary easing by the U.S. Federal Reserve.
On the Multi Commodity Exchange (MCX), December gold futures climbed ₹2,442, or 1.88%, to reach a lifetime high of ₹1,32,294 per 10 grams. Meanwhile, the February 2026 contract saw an even sharper rise, gaining ₹2,927, or 2.23%, to settle at ₹1,34,024 per 10 grams, marking six consecutive sessions of gains.
Analysts attributed this upward momentum to concerns over a possible credit crisis in the U.S., alongside expectations of a weaker dollar and forthcoming interest rate cuts by the Federal Reserve.
Silver mirrored gold’s upward trajectory, hitting record levels on the MCX. December silver futures jumped ₹2,752, or 1.64%, to reach ₹1,70,415 per kilogram, while the March 2026 contract extended gains for the fifth straight session, rising ₹3,274, or 1.93%, to ₹1,72,350 per kilogram.
Market experts noted that continued safe-haven buying and technical momentum have been key drivers behind the sustained bullish trend in both metals.
International markets also reflected strong demand for precious metals. Comex gold futures for December delivery surged $71.09, or 1.65%, to $4,375.69 per ounce on Friday, following a record breach of $4,300 per ounce the previous day.
During the session, gold touched an intraday peak of $4,391.69 per ounce. Analysts observed that persistent safe-haven interest and robust technical indicators have overshadowed bearish sentiment, supporting the strong upward trajectory.
Comex silver futures for December delivery traded slightly higher at $53.38 per ounce, after setting a record of $53.76 per ounce in the preceding session.
Market watchers indicated that heightened geopolitical tensions, including renewed U.S.-China trade frictions and concerns over the U.S. government shutdown, have contributed to repeated record highs in bullion this week.
Further supporting the rally, investors responded to signals from the Federal Reserve suggesting a slowing U.S. labor market, which has increased expectations of a 25 basis point rate cut later this month, with another potential reduction likely in December.
Analysts highlighted that gold has surged more than 65% in 2025, fueled by central bank acquisitions, exchange-traded fund inflows, and a broad-based search for safe assets amid global economic uncertainty.
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