Gold and Silver Prices Reach Record Highs Amid Economic Turmoil

On October 6, 2025, gold prices in the domestic futures market surged to a new record high, reaching Rs 1,19,560 per 10 grams. This represents a significant increase of Rs 1,447, or 1.22%, from the previous day's close. The rally in gold prices was driven by safe-haven buying, as investors sought refuge from the ongoing uncertainty surrounding the US government shutdown and growing expectations of further Federal Reserve rate cuts.

The yellow metal's gains were not limited to the domestic market. Global Comex gold futures also rose, reaching a record high of USD 3,957.90 per ounce. Silver, too, witnessed a robust rally, with the December delivery contract jumping Rs 1,956, or 1.34%, to a fresh peak of Rs 1,47,700 per kilogram.

Analysts attribute the precious metals' surge to the budget impasse in Washington, which has stalled key federal programs and delayed the release of critical economic data. This has intensified risk aversion among investors, leading them to flock to safe-haven assets like gold and silver. The market is now pricing in a quarter-point rate cut by the Federal Reserve this month, with another expected in December, further fueling the demand for precious metals.

Beyond the macroeconomic factors, the silver market is also being supported by tightening supply conditions, with the Silver Institute projecting a global market deficit for a fifth consecutive year in 2025.