Bullion Surge
Gold, silver surge to new record highs on weak dollar, Fed rate cut hopes
This story was originally published at 09:57 IST on 17 October 2025
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--COMEX Dec gold contract hits fresh record high of $4,392 per ounce
--COMEX Dec silver contract hits fresh record high of $53.76 per ounce
--MCX Dec gold contract hits fresh record high of INR 131,699 per 10 gm
--MCX Dec silver contract hits fresh record high of INR 169,200 per kg
MUMBAI - Futures contracts of gold and silver on the Multi Commodity Exchange of India hit fresh all-time highs Friday, tracking contracts on the COMEX, where prices rose due to a weak dollar and growing expectations of further rate cuts by the US Federal Reserve. Prices were also supported by the simmering trade tensions between the US and China, and the continuation of the US government shutdown.
The dollar continued to fall Friday as tensions between the US and China weighed on investors' sentiment. Hopes of rate cuts by the Fed also put pressure on the greenback. A weak dollar makes dollar-denominated commodities more appealing for other currency holders, thereby boosting their demand.
Top US officials have accused China of betraying a trade truce reached earlier this year, escalating tensions between the two economic giants, the BBC reported. US Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent blasted China's plans to curb exports of rare earths on Wednesday, the report said. At the same time, the US left the door open to negotiation, questioning whether China would ultimately implement the export controls it announced last week, it said.
China on Thursday defended its ongoing purchases of Russian oil. China's Ministry of Commerce accused the US of creating "panic" over Beijing's controls on rare earth exports.
The ongoing US government shutdown, which entered its 17th day on Friday, also boosted safe-haven demand for both the precious metals. The shutdown has halted scheduled economic data, with a Treasury official warning it could cost the economy up to $15 billion a week in lost output, Reuters reported.
Expectations of more rate cuts by the US Federal Reserve also supported prices. According to CME's FedWatch tool, 96.8% participants anticipate a 25-basis-point rate cut this month, and 3.2% of traders are pricing a 50-basis-point rate cut. Gold prices typically rise during times of economic and geopolitical uncertainties and low-interest-rate environment.
Prices of silver were further supported by a supply squeeze in London. Strong demand in India due to the festival and wedding seasons has also raised supply concerns, brokerage Kedia Advisory said in a note.
At 0926 IST, the most-active December gold contract on the MCX hit a fresh high of INR 131,740 per 10 grams. The most-active December silver contract also hit another high of INR 169,392 per kilogram, after touching an all-time high of 169,200 per kg earler.
At 0926 IST, the most-active December gold contract on COMEX was up 1.5% from the previous close at $4,368.6 per ounce, after touching a record high of $4,392 per ounce earlier in the day. The most-active December silver contract on COMEX was flat at $53.32 per ounce after hitting a high of $53.76 per ounce earlier in the day. End
US$1 = INR 87.74
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Shreya Shetty
Edited by Vandana Hingorani
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