Reference to tribune Silver too is a strong performer on the strong investor interest. According to PTI, New Delhi Updated: Oct 6, 2025, 1:49 PM IST.

Gold Prices Skyrocket to all-Time High

On Monday, gold hit a new record of ₹1,19,560 per 10 grams on MCX. Investors rushed to buy as a safe haven. The US government shutdown and hopes of a Fed rate cut drove the rally. December gold futures rose 1.22 percent, while February 2026 contracts climbed 1.27 percent to ₹1,20,845 per 10 grams. This marked the yellow metal’s seventh straight gain. Gold had already jumped ₹3,222 per 10 grams last week, fueled by global uncertainty and strong physical demand in Asia.

Demand and Investor Sentiment

In Asia, the physical demand remained resolute in spite of a drag in China.

The inflows into the holdings of the SPDR have also been high last week.

Increased investor confidence, said Manav Modi, Analyst, Precious Metal Research at Motilal Oswal Financial Services.The SPDR Gold Shares, which is the largest gold-backed exchange-traded fund in the world, had noteworthy inflows, and this is an indicator that investors still consider gold as a better hedge against volatility.

Silver Follows Gold’s Rally

Silver too rose sharply on Monday. December silver futures improved 1956, or 1.34 per cent, to 1,47,700 per kilogram whereas the March 2026 contract improved 2,053, or 1.39 per cent, to 1,49,321 per kilogram. The white metal had already recorded good gains of 3855 per kilogram every week, 2.72 percent last week. Analysts put this momentum to the tightening of supply and safe-haven demand under the global uncertainty.

US Shuts Stokes Safe-Haven Purchases

Market analysts indicated that the long-standing budget crisis in Washington increased the risk aversion and drove investors to gold and silver. The shutdown has not only halted major federal programs but also postponed major economic information, an additional factor in the market panic. The more an uncertainty surrounds, the more gold is shining. Although the metal has gone up by almost 50 percent this year, investors still prefer the metal due to global instability, Aksha Kamboj, the Vice President of the India Bullion and Jewellers Association and also the Executive Chairperson of Aspect Global Ventures.

Global Market Update

Coming to the international front, Comex gold futures due in December shot up 1.2 per cent to record high of $3957.90 per ounce and silver futures shot up more than 1 per cent to record high of $48.47 per ounce, the highest since April 2011. Jigar Trivedi, Senior Research Analyst at Reliance Securities, said that the US shutdown and the expectations of a rate-cut by Fed increased the demand on safe-havens making silver go above $48.3. He also included that investors believe that Fed will cut the rate a quarter point in this month, and maybe in December. Comments by Fed Governor Stephen Miran and FOMC minutes as well as the speech by the chair Jerome Powell later this week are also being monitored by traders with further policy hints.

Snug Supply Contributes to the Power of Silver

In addition to the macroeconomic forces, the supply aspect is gaining momentum to silver prices. The Silver Institute estimates the market shortage in the world in the fifth consecutive year in 2025, which highlights tightening supply conditions.

Outlook

Both gold and silver will continue to stay on the limelight with political gridlock in Washington and anticipation of monetary easing by the Federal Reserve. Precious metals are still being used by investors as a safe haven on the backdrop of global uncertainty regarding the economy and policies.

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