Gold & Silver Prices Hit Record Highs in the Wake of Global Uncertainty
Indian bullion markets have jumped to record highs this month as a combination of global uncertainty, weak rupee, and domestic demand in anticipation of the festive season pushed prices to new records
Price Highlights
Gold was trading at ₹1,17,351 per 10 grams on MCX on September 30, 2025, after firm safe-haven purchases driven by the threat of a U.S. government shutdown and expectations of future rate cuts.
Silver also recorded gains, with futures hitting all-time highs at ₹1,43,968 per kilogram.
In the home grey market, gold has been retailed at close to ₹1,20,000 per tola (≈10 g)—higher than the GST-inclusive official prices—while silver is being asked for a premium of around ₹700/kg over the official price of ₹1,49,430/kg.
In metros such as Ahmedabad, gold rose to ₹1.19 lakh per 10 g and silver rose beyond ₹1.47 lakh per kg.
Internationally, gold rallied over $3,833/oz due to safe-haven buying and a downward trajectory in the U.S. dollar index. Silver also hit a 14-year peak at about $46.85/oz.
What’s Driving the Rally?
1. International Uncertainties / Safe-Haven Demand: Anxiety over a U.S. government shutdown, geopolitical risks, and macroeconomic uncertainty have driven investors towards precious metals.
2. Rate-Cut Expectations: There are expectations of further interest-rate reductions by the U.S. Federal Reserve, which is supportive of gold.
3. Deteriorating Rupee: The weakness of the rupee puts a higher purchasing power in rupee terms into the hands of the buyers, thus amplifying the price increase in rupee terms.
4. Festive and Seasonal Demand: As festivals and weddings loom near, demand for physical gold and silver is robust, especially in India.
5. Tightly Supply & Scrap Inaction: Despite soaring prices, scrap supplies of used jewelry have not entered the market in anticipated quantities. Many owners do not want to sell, believing in further appreciation.
Market Outlook & Risks
Experts feel the rally still has room to move, but with caution:
Some expect gold potentially test $3,900–$4,000/oz levels in the coming weeks.
A possible downside risk comes if U.S. economic data surprises or rate cut hopes get postponed, which can slow down the momentum.
Domestic variables such as import pressure, concerns over trade deficit, or policy shifts (GST, import duties) may also temper the speed of advances.
For silver, the industrial demand factor brings an added dimension of complexity; any slowdown in industrial growth would temper its advances.