Source: The Economic Times
On Monday, gold and silver prices reached new all-time highs in India in line with a strong rally in global markets. The move was supported by growing expectations of U.S. Federal Reserve rate cuts, a weaker dollar, and a rising sense of uncertainty across the globe.
Gold Prices in India
Gold futures for October delivery traded on the Multi-Commodity Exchange (MCX) have surged by ₹1,204, or 1.06%, to reach an all-time high of ₹1,14,992 per 10 grams. The December contract has also increased by ₹1,034, or 0.9%, to ₹1,15,925 per 10 grams.
Gold had already gained ₹4,188, or 3.77%, last week to close at ₹1,14,891 per 10 grams, as reported by PTI.
According to Prathamesh Mallya, DVP–Research at Angel One, “Gold prices have been shining for quite some time, and the past week saw gold prices touching new highs in the domestic as well as international markets.”
Gold prices have shown remarkable strength, both in India and globally
“Tariff levies, the Russia-Ukraine war, US-China trade tensions, and a host of other factors continue to drive liquidity and momentum in gold prices in the recent past,” Mallya told PTI.
Silver Rates in India
Silver prices also increased on Monday. In the December contract, silver gained ₹2,290, or 1.61%, to ₹1,44,179 per kilogram, and in the March 2026 contract, silver gained ₹2,559, or 1.79%, to ₹1,45,817 per kilogram.
Last week, silver prices gained ₹12,051, or 9.28%, to ₹1,41,889 per kilogram.
Global Market Support
In international trading, December gold futures rose almost 1%, to $3,837.72 per ounce, and silver grew more than 1%, to $47.39 per ounce.
“Gold prices climbed to a record high, driven by growing expectations of further US rate cuts and a weaker dollar,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Trivedi remarked that inflation data recently released in the United States matched expectations and allowed the Fed more leeway to ease its policies. The dollar index, which measures the dollar against major currencies, declined 0.18% to 97.97, and increased precious metals further.
He noted that “Traders are currently pricing in a 90% chance of a rate cut in October and about a 65% probability of an additional move in December. At the same time, investors are monitoring the risk of a potential US government shutdown, which could delay the release of key labour market data and complicate the Fed’s decision-making process.”
Prospects
Adding to the concerns around the globe, U.S. President Donald Trump recently announced new tariffs on drugs, trucks, and furniture, as of October 1. Analysts believe that hopes of rate cuts, global tensions, and trade risks will keep gold and silver prices high in the near term.
