October 17, 2025 (Punjab Khabarnama Bureau) : Gold and silver prices surged to fresh record highs on the Multi Commodity Exchange (MCX) on Tuesday, driven by global economic uncertainty, rising geopolitical tensions, and renewed investor demand for safe-haven assets. Analysts said the rally is being supported by a mix of factors, including the weakening U.S. dollar, falling bond yields, and expectations of potential interest rate cuts by major central banks in 2025.
On the MCX, gold futures for December delivery rose sharply to touch an all-time high of ₹74,560 per 10 grams, while silver futures hit ₹92,200 per kilogram, also marking a record. The strong momentum in precious metals has continued for the past two weeks, with both gold and silver showing consistent upward movement amid global market volatility.
According to traders, the recent escalation of geopolitical tensions in the Middle East, coupled with global inflation concerns, has prompted investors to move away from riskier assets like equities and cryptocurrencies toward gold and silver. “Safe-haven demand is driving this rally. Both metals are benefiting from uncertainty and the potential for monetary easing,” said Praveen Singh, a senior market analyst.
Globally, spot gold prices climbed above $2,500 per ounce — the highest level in history — while silver traded near $31.6 per ounce, reflecting a similar bullish trend in international markets. The depreciation of the rupee against the U.S. dollar also contributed to higher domestic prices.
Market experts are now watching key technical levels closely. For gold, immediate resistance is seen near ₹74,800, while support lies around ₹73,400. For silver, analysts predict a potential move toward ₹93,000 if the metal sustains above ₹91,500. A break below ₹90,000, however, may trigger short-term profit booking.
Investors are advised to remain cautious, as the volatility in global markets could lead to quick price swings. “Although the medium-term outlook remains bullish, investors should avoid panic buying at these elevated levels,” said commodity strategist Anuj Gupta. He added that gold could consolidate in the ₹73,000–₹75,000 range before attempting further gains.
Why Are Precious Metals Rising?
Economists attribute the recent surge to a combination of global macroeconomic trends. The Federal Reserve’s dovish outlook and expectations of an early 2025 rate cut have weakened the U.S. dollar index, making gold cheaper for investors holding other currencies. Simultaneously, China’s ongoing stimulus efforts and rising physical demand during India’s festive season have added further support.
Indian retail jewelers have reported higher footfall in anticipation of Dhanteras and Diwali, with many consumers rushing to make purchases before prices climb further. “Gold is not just an investment but an emotion in India. People are buying in small quantities despite the price,” said a leading jeweler from Mumbai.
On the other hand, silver is gaining traction due to its growing industrial use. The global transition toward renewable energy has increased silver demand for solar panels and electric vehicles, making it both an investment and an industrial commodity. Analysts believe this dual demand could sustain silver’s rally for months.
Expert Targets to Watch:
- Gold: ₹75,200–₹76,000 in the near term if global prices sustain above $2,480 per ounce.
- Silver: ₹93,000–₹95,000 per kg in the short term, backed by industrial and investor demand.
- Support Levels: Gold at ₹73,400; Silver at ₹90,000.
However, traders are urged to stay alert to potential corrections. “If inflation data or U.S. economic indicators surprise on the upside, we could see some downward movement. But overall sentiment remains positive,” said Mehul Kothari, a senior technical analyst.
Globally, central banks’ continued gold accumulation is another bullish factor. Reports suggest that countries like China, Turkey, and India have significantly increased their gold reserves to hedge against currency volatility. The World Gold Council recently noted a record rise in central bank purchases in 2024, which has supported the upward momentum.
Outlook for Investors:
Experts recommend a balanced approach for new investors — allocate 10–15% of one’s portfolio to precious metals for stability. For long-term investors, any dip toward ₹72,500 in gold and ₹89,000 in silver may offer good accumulation opportunities.
In conclusion, both gold and silver are shining brighter than ever on MCX, buoyed by global uncertainty, strong physical demand, and central bank buying. While record highs make traders optimistic, experts advise cautious optimism amid possible short-term corrections. The festive season and supportive macroeconomic trends are expected to keep the metals glittering for the foreseeable future.
Summary
Gold and silver prices hit record highs on MCX amid global uncertainty, festive demand, and weaker dollar trends. Experts predict continued strength but caution against panic buying at peaks.