Gold Breaks ₹1.11 Lakh Mark, Silver Reaches Record High on Overseas Cues

New Delhi, September 22, 2025: Prices of gold and silver shot to new record highs in the local futures market on Monday on the back of robust overseas sentiment and a weak rupee. Investors sought refuge in safe-haven assets before crucial US inflation data and statements by Federal Reserve officials this week.

Gold Spikes to New High

On the Multi Commodity Exchange (MCX), gold futures due in December advanced by ₹799 or 0.72 percent to a high of ₹1,11,750 per 10 grams. The actively traded contract in October also added ₹761 or 0.69 percent to ₹1,10,608 per 10 grams. It had touched an intra-week high of ₹1,10,666 last week.

Worldwide, gold futures rose USD 26.82 or 0.72 percent to USD 3,732.62 per ounce, near last week’s record high of USD 3,744 an ounce. The rally comes after the US Federal Reserve cut interest rates for the first time this year, with markets expecting two further cuts in October and December. Prospects of ongoing easing in monetary policy, coupled with geopolitical tensions and strong central bank purchases, have driven gold’s near 40 percent rise this year.

Silver Follows with Record Gains

Silver tracked gold’s strength, reaching record-high prices on the MCX. March 2026 futures climbed ₹2,446 or 1.86 percent to ₹1,33,582 a kilogram and December contracts rose ₹2,473 or 1.9 percent to ₹1,32,311.

Internationally, December silver futures gained 2.17 percent to USD 43.88 per ounce. Analysts pointed out that silver is outlining a more aggressive path based on demand from solar panels, electric vehicles, 5G infrastructure, and battery storage. As supply growth is contained, the market remains vulnerable to disruptions.

Domestic Drivers

A sagging rupee and muted equity markets further helped bullion’s attractiveness to Indian investors. Traders pointed out that both precious metals remain supported by safe-haven buying, robust ETF inflows, and lingering tariff-related uncertainty.

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