Gold Hits All-Time High of ₹1.05 Lakh per 10g; Silver Nears ₹1.26 Lakh on Global Cues
Weaker dollar, Fed rate cut expectations, and safe-haven demand push precious metals to new all-time levels on MCX and retail markets
Gold and silver futures on the Multi-Commodity Exchange (MCX) surged to record highs on Monday, driven by global monetary policy expectations, increased central bank buying, and elevated demand for safe-haven assets.
Gold October futures rose by 2.03%, closing at ₹1,05,937 per 10 grams, while silver futures jumped 2.56% to settle at ₹1,24,990 per kilogram. In retail markets, gold was priced at ₹1,05,000 per 10 grams and silver at ₹1,23,500 per kg, with sharp daily increases of ₹2,000 and ₹6,000, respectively.
Globally, gold hit $3,508.50 per ounce, while silver futures crossed ₹1.24 lakh per kg. The rise is linked to strong global demand, expectations of a US Fed rate cut, and gold now making up 20% of global forex reserves, overtaking the euro.
According to analysts, the upward momentum in precious metals was influenced by a weakening US dollar and growing speculation of a rate cut by the US Federal Reserve. Market data shows a 90% probability of a 25-basis-point rate cut at the Fed’s upcoming policy meeting on September 17, 2025.
“Investors are increasingly allocating funds to gold and silver as uncertainty persists in global markets,” said Manav Modi, Analyst – Commodity and Currency, Motilal Oswal Financial Services.
“Global uncertainty due to higher U.S. trade tariffs and weakness in the rupee continues to support prices of gold and silver,” noted Manoj Kumar Jain of Prithvifinmart Commodity Research.
“Silver hit a record high in the domestic markets, largely driven by industrial demand in clean energy and electronics, with speculative interest pushing prices sharply higher. The US Geological Survey’s proposal to classify silver as a critical mineral has created additional momentum,” said Trivesh D, Chief Operating Officer at Tradejini.
Global central banks have also played a significant role in supporting gold prices. Recent data suggests that gold now constitutes approximately 20% of global official foreign exchange reserves, overtaking the euro. The increase is attributed to ongoing de-dollarisation and reserve diversification efforts by central banks across Asia, the Middle East, and Latin America.
Goldman Sachs has projected that gold prices may rise further, with estimates suggesting levels could reach $4,000 per ounce by mid-2026, subject to the continuation of current macroeconomic trends.
In the Indian context, rising investment demand has contributed to the rally, while traditional silver consumption in manufacturing and artisanal sectors has declined. Bullion traders report subdued demand from industrial users and silverware manufacturers due to elevated price levels.