Gold Prices Hit Record High Ahead of Dhanteras Amid Global Uncertainty
New Delhi, October 17, 2025 — As the festive season approaches, gold prices in India have surged to an all-time high, marking a historic moment for the bullion market. On Friday, gold futures for December delivery on the Multi Commodity Exchange (MCX) jumped by ₹2,442, or 1.88%, reaching ₹1,32,294 per 10 grams. This unprecedented rise reflects both increased festive demand and growing global economic concerns.
The surge in prices is being driven by investors seeking safe-haven assets amid rising uncertainty in the global financial landscape. Mounting fears of a potential credit crisis in the US, renewed geopolitical tensions, and a softening tone from the US Federal Reserve regarding interest rates have all contributed to the momentum behind gold. These factors have led to increased investment in gold as a hedge against inflation and economic instability.
Gold’s rally is not just a domestic story. Globally, prices have broken barriers as well. On the international market, Comex gold futures for December delivery jumped by $71.09 to settle at $4,375.69 per ounce, touching an intraday high of $4,391.69 per ounce. The metal breached the $4,300 mark for the first time ever, driven by safe-haven buying and strong technical support. Concerns about slowing global growth, a weaker US dollar, and expectations of interest rate cuts have all boosted the metal’s appeal.
Silver prices also joined the rally. On the MCX, silver futures for December delivery increased by ₹2,752, reaching ₹1,70,415 per kilogram. The March 2026 silver contract also hit a new record of ₹1,72,350 per kilogram after gaining ₹3,274. Silver’s upward movement has been supported by similar global trends, including industrial demand and investor interest in precious metals as a store of value.
Economic signals from the United States are playing a major role in shaping market behavior. Recent comments from the US Federal Reserve have pointed toward a weakening labour market, which has led investors to anticipate a potential rate cut in the coming months. Lower interest rates typically benefit non-yielding assets like gold, making them more attractive during times of low or negative real returns on traditional instruments.
The ongoing rally in gold is also being fueled by renewed trade tensions between the US and China and concerns over a partial shutdown of the US government. These factors have caused investors to shift away from riskier assets and park their funds in safer avenues, further driving demand for precious metals.
From a domestic perspective, the rise in gold prices comes at a time when demand traditionally spikes due to Dhanteras and Diwali — festivals that are culturally significant for buying gold in India. Despite the steep prices, sentiment among buyers remains optimistic, as gold continues to be seen as both an auspicious purchase and a stable investment.
The sharp increase in prices may, however, make retail buyers cautious in the short term. For long-term investors, gold remains a reliable asset class for portfolio diversification and wealth preservation. Meanwhile, short-term traders are advised to stay alert, as any shift in global policy or market sentiment could bring volatility.
With gold prices rising more than 65% since the beginning of the year — supported by central bank purchases, exchange-traded fund (ETF) inflows, and global demand — the yellow metal is once again asserting its dominance as a cornerstone of financial security.
As the festive gold rush intensifies, both traditional buyers and investors are watching closely. For now, gold’s glitter shows no signs of fading.