Abhishek Sinha
Mumbai, 16 October 2025:
Gold and silver prices touched fresh all-time highs in Thursday’s early trade on the Multi Commodity Exchange (MCX), supported by global economic uncertainty, dollar weakness, and firm domestic demand ahead of the festive season.
At 9:30 am, MCX Gold December futures were trading up 0.60% at ₹1,27,960 per 10 grams, after hitting an intraday high of ₹1,28,395 — a rise of nearly ₹1,200 or 1%.
Similarly, MCX Silver December futures surged 1.5% or ₹2,500 to a new peak of ₹1,64,660 per kg, before easing slightly to ₹1,63,812.
Global Cues Push Gold Higher
Globally, gold prices climbed to new record levels, driven by a weaker US dollar, ongoing US-China trade tensions, and rising concerns over global economic growth.
The US dollar index dropped by nearly 0.4% amid political instability and a government shutdown in the United States, making the yellow metal cheaper for holders of other currencies.
Adding to the uncertainty, Washington’s latest comments against Beijing’s rare earth export controls raised fears of a renewed trade war, prompting investors to flock to safe-haven assets such as gold.
“Gold prices remain elevated due to expectations of a rate cut by the US Federal Reserve and heightened geopolitical risks,” said Darshan Desai, CEO of Aspect Bullion & Refinery.
He added that central bank gold buying and concerns over unsustainable debt levels globally will continue to support prices.
Why Silver Is Also Shining
Silver prices mirrored gold’s rally, supported by rising industrial demand and speculative buying.
The metal has gained sharply over the past few sessions amid expectations of a broader commodity rally led by energy and base metals.
Technical Outlook: Key Levels to Watch
According to Manoj Kumar Jain, Head of Commodity Research at Prithvifinmart:
- Gold is expected to trade between $3,980 and $4,280 per troy ounce this week.
- Silver could fluctuate between $48.50 and $53.50 per troy ounce.
He added that on the MCX:
- Gold has support at ₹1,26,000 and ₹1,24,400, and resistance at ₹1,28,500 and ₹1,30,000.
- Silver has support at ₹1,60,600 and ₹1,59,000, and resistance at ₹1,64,000 and ₹1,66,500.
Jain suggested a buy-on-dips strategy:
“Buy gold between ₹1,27,000–₹1,25,500 with a stop loss at ₹1,24,000 for targets of ₹1,28,500–₹1,30,000.
Buy silver between ₹1,62,000–₹1,59,500 with a stop loss at ₹1,57,700 for targets of ₹1,64,000–₹1,66,500.”
Similarly, Rahul Kalantri, VP–Commodities at Mehta Equities, said:
“Gold has resistance near ₹1,28,500, while silver could face resistance around ₹1,64,950. Any correction towards ₹1,26,000 in gold or ₹1,60,500 in silver can be seen as a buying opportunity.”
What Should Investors Do Now?
Experts advise that while the long-term trend remains bullish for both gold and silver, short-term volatility may continue due to fluctuations in the dollar index, global bond yields, and US-China trade headlines.
Investors should:
- Accumulate on dips rather than chasing highs.
- Avoid aggressive short-selling, as any correction is likely to be limited.
- Maintain a medium- to long-term view as gold could benefit from potential Fed rate cuts and safe-haven demand.
Bottom Line
With global uncertainties rising and the festive season boosting local demand, both gold and silver appear well-supported.
However, traders should stay alert to short-term volatility triggered by international developments and currency movements.
