MCX gold futures peak at over ₹1.28 lakh/10 grams ahead of Diwali; Silver hits record high

Gold futures for December delivery soared ₹1,185 or 0.93% to a fresh record high of ₹1,28,395 per 10 grams on the Multi-Commodity Exchange (MCX) on Thursday, October 16, supported by the upcoming festivals of Diwali and Dhanteras.

Analysts said traders rushed to safe-haven assets after renewed geopolitical and trade worries clouded the global economic outlook. The sentiment was further buoyed by remarks from Federal Reserve Chair Jerome Powell, hinting at possible monetary easing later this year.

On the MCX, safe-haven contracts for February 2026 delivery advanced as much as ₹977 or 0.76% to a new lifetime high of ₹1,29,380 per 10 grams.

On Wednesday, domestic gold prices rallied for the third day straight, surging ₹1,000 to scale an all-time high of ₹1,31,800 per 10 grams in New Delhi, driven by continuous buying by retailers and jewellers amid the ongoing festive season, according to the All India Sarafa Association.

In the international markets, spot gold rose to hit a lifetime high of $4,218.32 per ounce, bolstered by central banks’ persistent gold buying, a weakening US dollar, along with geopolitical and trade tensions.

In the first quarter of 2025, central banks worldwide purchased over 244 tonnes of gold.

Silver futures for December delivery grew by ₹2,454 or 1.51% to a fresh all-time high of ₹1,62,206 per kilogram on the MCX on October 16.

The white-metal futures with the March 2026 expiry advanced as much as ₹2,699 or 1.66% to a record-high of ₹1,64,958 per kilogram, trading close to the ₹1.65 lakh mark.

However, silver prices retreated from the record levels, plunging by ₹3,000 to ₹1,82,000 per kg (inclusive of all taxes) on October 15.

On Wednesday, spot silver was trading 2.81% higher at $52.84 per ounce in the overseas markets. It had hit a fresh peak of $53.62 per ounce on Tuesday.

Silver prices have surged sharply amid a historic short squeeze and tightening liquidity in the London market, which forced traders to rush for physical supply worldwide.

Furthermore, silver has seen a rising demand in industries and green energy, with growing applications in electronics, electric vehicles, and solar panels. This growing demand comes amid supply constraints, according to analysts.