In a significant market development, gold prices have soared for the third consecutive day, adding a remarkable ₹2,600 to reach a new all-time high of ₹1,26,600 per 10 grams in New Delhi on Wednesday, October 8, 2025. This sharp rise is a direct response to robust global trends and mounting geopolitical tensions, notably exacerbated by the ongoing U.S. government shutdown.
Over the past three days, the precious yellow metal has witnessed an impressive increase of ₹6,000, as investors increasingly flock to safe-haven assets amidst the current climate of global risk aversion.
Prior to this latest surge, gold of 99.9% purity had closed ₹700 higher at ₹1,24,000 per 10 grams on Tuesday, October 7, following an earlier substantial jump of ₹2,700 on Monday, October 6, according to the All India Sarafa Association.
Specifically on Wednesday, gold with 99.5% purity saw a ₹2,600 appreciation, reaching an all-time high of ₹1,26,000 per 10 grams (inclusive of all applicable taxes) in the local bullion market. This follows its previous closing at ₹1,23,400 per 10 grams.
Market analysts attribute this surge primarily to the prolonged U.S. government shutdown and heightened global geopolitical tensions, which have collectively spurred investors to channel funds into gold, a historically reliable safe-haven asset.
The rally wasn’t limited to gold alone; silver prices also experienced a significant boost, climbing by ₹3,000 to trade near its own record high at ₹1,57,000 per kilogram (inclusive of all taxes) on Wednesday. The white metal had concluded the previous day, Tuesday, October 7, at ₹1,54,000 per kg.
Earlier, on Monday, October 6, silver had already achieved a record high of ₹1,57,400 per kilogram.
Internationally, bullion markets demonstrated powerful upward momentum. Spot gold saw an almost 2% increase, hitting an unprecedented high of $4,049.59 per ounce.
Kaynat Chainwala, AVP Commodity Research at Kotak Securities, commented on the situation: ‘Spot gold surpassed the significant $4,000 per ounce-mark for the first time. This was primarily fueled by safe-haven demand stemming from concerns about the U.S. economy and the government shutdown.’
Chainwala further added, ‘Other contributing factors to this upside included geopolitical tensions in Ukraine, political instability observed in France and Japan, and growing expectations of Federal Reserve interest rate cuts amidst an ongoing data blackout.’
In the global markets, spot silver also marked a strong performance, rising over 2% to reach a high of $48.99 per ounce.