Gold and Silver Reach Fresh Record Highs on Fed Rate Cut Expectations

New Delhi, September 23, 2025: Gold prices reached record highs in the domestic futures market on Tuesday, continuing their record-breaking spate as safe-haven demand and US Federal Reserve rate cut expectations fueled optimism.

Gold Reaches Lifetime Highs 

On the Multi Commodity Exchange (MCX), October delivery gold futures rose ₹520 or 0.46% at ₹1,12,750 per 10 grams, a new lifetime high. The December contract also went up by ₹530 or 0.46% to ₹1,13,750 per 10 grams, another record.

On international bourses, December-delivery gold futures rose to an all-time high of USD 3,794.82 an ounce on the back of the Fed’s latest 25 basis point rate reduction and increasing expectations of further easing in the year ahead.

Silver Extends Rally

Silver prices followed gold’s trend, with the white metal reaching new highs. MCX silver for December delivery increased ₹461 or 0.34% to ₹1,34,016 per kg, and the March 2026 contract appreciated ₹508 or 0.37% to ₹1,35,397 per kg. On the global front, however, silver futures for December delivery inched lower to USD 44.19 per ounce.

Drivers of the Bullion Rally

The recent bullion boom is being attributed to:

• US Fed’s initial 2025 rate cut and anticipation of further declines in the future.
• Relatively weak dollar index and depreciation of the rupee, further bolstering gold’s appeal locally.
• Ongoing central bank buying and robust exchange-traded fund (ETF) inflows.
• Safe-haven appeal during increased geopolitical tensions, such as the Russia-Ukraine war and tensions in the Middle East.

Market Outlook

Traders are now looking to Fed Chairman Jerome Powell’s future comments on the US economic outlook and the release of the Personal Consumption Expenditures (PCE) price index on Friday, which is the Fed’s preferred measure of inflation. Both events are scheduled to offer increased clarity on the central bank’s monetary policy trajectory.

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