Gold, silver prices on MCX surge over 1% to fresh peaks on weak dollar and Fed rate cut hopes

Gold prices in India hit fresh lifetime highs on the Multi Commodity Exchange (MCX) on Monday, September 29, on the back of a weak dollar and US Federal Reserve rate cut expectations in late October.

Gold futures for the October delivery climbed ₹1,465 (1.2%) to hit a record high of ₹1,15,253 per 10 gram from Friday’s closing price of ₹1,13,788 per 10 gram.

Contracts for the December delivery also jumped to ₹1,16,203 per 10 gram, rising by 1.1% (₹1,312) from the closing price of ₹1,14,891 per 10 gram on Friday.

Silver soared too, with the futures for the December expiry hitting its all-time high of ₹1,44,179 per kg on the MCX, up 1.6% from ₹1,41,889 per kg recorded on Friday.

Precious metals have been rising in both domestic and international markets with rising expectations of a US Federal Reserve rate cut, and a positive sentiment for the metals fueled by a weaker dollar. 

"Gold prices climbed to a record high, driven by growing expectations of further US rate cuts and a weaker dollar," a PTI report quoted Jigar Trivedi, Senior Research Analyst at Reliance Securities, as saying.

He added, "Traders are currently pricing in a 90 per cent chance of a rate cut in October and about a 65% probability of an additional move in December. At the same time, investors are monitoring the risk of a potential US government shutdown, which could delay the release of key labour market data and complicate the Fed's decision-making process.”

Gold prices in the overseas markets hit an all-time high as well. Gold futures for December delivery rose nearly 1% to touch a record high of $3,837.72 per ounce. Silver climbed over 1% to hit a high of $47.39 per ounce.

The CME FedWatch Tool suggests that there is a near 90% chance of a Fed cut in October.

The US Federal Reserve is scheduled to meet on October 28 and 29 to decide on monetary policy and give insights into the economic outlook for the future.

On Friday, gold prices (24K, 99.9% purity) in Delhi soared ₹330 to ₹1,17,700 per 10 gram, and Silver jumped ₹1,900 to hit a fresh record high of ₹1,41,900 per kg.

Gold’s rise

Gold, as a safe-haven asset, rises during geopolitical uncertainties and market volatility. This year, gold rates have jumped nearly 50%, driven by Trump tariff concerns, increased geopolitical tensions and fluctuations in the stock markets.

Last week, US President Donald Trump announced a new round of tariffs on imported drugs, trucks and furniture, effective October 1, adding to global uncertainty and raising trade war concerns.

As per market experts, the interplay of monetary easing expectations, geopolitical tensions, and trade-related risks is expected to keep bullion prices elevated in the near term, the PTI report said.

According to data by a leading commodity analyst, gold prices were up 43.76% as of September 9, 2025 when compared to last year on Diwali (October 31, 2024).