Precious Metals Surge to Record Highs Amid Economic Uncertainty

On September 29, 2025, gold and silver prices in the Indian futures market have reached unprecedented levels, reflecting a strong rally in international markets. Investors have been encouraged by the prospect of the US Federal Reserve cutting interest rates, which has weakened the dollar and increased the appeal of precious metals as a hedge against economic uncertainty.

The gold futures contract for October delivery on the Multi Commodity Exchange (MCX) has jumped to a record high of Rs 1,14,992 per 10 grams, a 1.06% increase. The December contract has also risen by 0.9% to Rs 1,15,925 per 10 grams. Silver has seen even more substantial gains, with the December contract climbing 1.61% to a new high of Rs 1,44,179 per kilogram.

Analysts attribute the precious metals' surge to a combination of factors, including ongoing geopolitical tensions, trade risks, and the potential for further monetary policy easing by the US central bank. The recent US inflation data has supported the view that the Federal Reserve may continue to cut rates later this year, further boosting the appeal of gold and silver as safe-haven assets.

Despite the record-breaking prices, investors remain uncertain whether to enter the market or book profits at these elevated levels. The rally in precious metals shows no signs of slowing, as the global economic and political landscape continues to fuel demand for these commodities.