Gold prices absolutely exploded on Thursday, October 16, 2025, hitting an unprecedented high of ₹1,28,395 per 10 grams in India’s futures market. Globally, the precious yellow metal comfortably breached the $4,250 per ounce mark. This astonishing surge is primarily attributed to growing expectations of interest rate reductions from the U.S. Federal Reserve, compounded by ongoing geopolitical unrest.
On the Multi Commodity Exchange (MCX), gold futures contracts set for December delivery saw a remarkable climb of ₹1,185, marking a 0.93% increase, to firmly establish a new record peak of ₹1,28,395 for every 10 grams.
This upward trend continued for the fifth day in a row, with the February 2026 gold futures contract also seeing a significant leap of ₹977, or 0.76%. It touched its own historic high of ₹1,29,380 per 10 grams, further signaling robust investor confidence in gold.
“Gold continues to hold its ground at these record-breaking levels,” noted Darshan Desai, CEO of Aspect Bullion & Refinery. “This is largely fueled by the market’s anticipation of further interest rate cuts by the U.S. Federal Reserve, alongside persistent diplomatic strains between Washington and Beijing.”
Desai elaborated that the futures market is now pricing in a more substantial rate reduction from the Fed, potentially as early as this month or by December, which could provide yet another significant upward thrust to gold prices.
“Furthermore, gold’s traditional role as a safe-haven asset is reinforced by worries over escalating and potentially unsustainable global debt, a softening U.S. dollar, and sustained purchasing by central banks worldwide,” Mr. Desai concluded.
Following gold’s impressive run, silver prices on the MCX also reached new all-time highs. The December delivery contract for the white metal saw a substantial jump of ₹2,454, or 1.51%, to hit a record-shattering ₹1,64,660 per kilogram.
The March 2026 silver contract mirrored this strong performance, extending its winning streak for the fourth straight session. It climbed an impressive ₹2,699, or 1.6%, to reach a fresh peak of ₹1,64,958 per kilogram on the commodities exchange.
Adding to bullion’s allure, the dollar index, which measures the U.S. dollar’s value against a basket of six major currencies, dipped by 0.17% to 98.63. A weaker dollar typically makes dollar-denominated commodities like gold and silver more attractive to international buyers.
On the international stage, Comex gold futures maintained their relentless upward trajectory, reaching a new record of $4,254.80 per ounce, reinforcing the global demand for the metal.
“Gold prices surged past $4,250 per ounce on Thursday, extending its record-breaking rally,” commented Jigar Trivedi, Senior Research Analyst at Reliance Securities. “This is predominantly due to heightened safe-haven demand and increasing certainty regarding a more accommodative U.S. monetary policy.”
Mr. Trivedi further explained that Federal Reserve Chair Jerome Powell’s recent statements pointed to indicators of a weakening labor market. These remarks have led investors to almost fully anticipate a 25 basis point rate cut during this month’s Fed meeting, with another similar reduction looking probable in December.
Global silver futures also mirrored gold’s bullish trend. The December delivery contract for silver soared to a new lifetime high of $52.86 per ounce, showcasing the broad strength across precious metals.
Meanwhile, geopolitical tensions continued to simmer. On Wednesday, U.S. officials voiced strong criticism over China’s increased restrictions on rare earth exports. They warned that these measures could disrupt global supply chains and suggested that Washington might implement retaliatory actions.
Adding to the uncertainty, U.S. Treasury Secretary Scott Bessent indicated that the U.S. might explore imposing export limits or tariffs on Chinese imports of Russian oil, contingent on coordination with European allies. Such a move would undoubtedly exacerbate trade relations and inject further volatility into global markets.
Analysts unanimously agree that both gold and silver have been on an impressive record-setting spree throughout the week, propelled by significant investor interest in precious metals. Should the Federal Reserve confirm a rate cut, it is highly probable that bullion prices will be propelled to even newer, unprecedented records in the coming weeks.