Gold & Silver Hit Record Highs on MCX Amid Fed Rate Cut Bets
Gold & Silver Hit Record Highs on MCX Amid Fed Rate Cut Bets
Mumbai, 22 September 2025: Gold and silver prices surged to fresh lifetime highs on Monday, supported by global economic uncertainties and expectations of more rate cuts by the US Federal Reserve.
On the Multi Commodity Exchange (MCX), gold futures with October expiry touched a record high of ₹1,10,698 per 10 grams, while December contracts hit ₹1,11,820 per 10 grams. In the retail market, the price of 24-carat gold rose by ₹430 per 10 grams to ₹1,12,580, according to Good Returns data.
Silver too hit fresh peaks. December futures on MCX touched ₹1,32,424 per kg, while March contracts scaled an all-time high of ₹1,33,687 per kg. Domestic silver prices climbed ₹3,000 in a single day to reach ₹1,38,000 per kg.
Why are gold and silver rising?
Analysts say the rally is being driven by expectations of further monetary easing by the US Fed. “Gold jumped as traders bet on two more rate cuts by the Fed before year-end,” said Axis Securities in its Commodity Weekly Insights report.
Ross Maxwell, Global Strategy Lead at VT Markets, said that several factors are supporting gold’s long-term outlook. “Slowing US economic growth, persistent inflation risks, strong central bank demand, and the likelihood of more rate cuts later this year are all positive signals,” he noted.
Short-term risks remain
However, experts caution that the rally could face pressure in the near term. If US economic data turns out stronger than expected or if the Fed delays rate cuts, gold prices may see corrections. “Longer-term, if inflation stays high, the dollar weakens, or rate cuts go through as expected, gold could touch new highs again,” Maxwell added.
The US Fed had cut its policy rate by 25 basis points on September 17, bringing the target range to 4.00–4.25%. This was its first cut since December 2024 and largely matched market expectations. The move initially pushed gold to a record, but prices later slipped in a typical “buy the rumor, sell the fact” reaction.
Puneet Singhania, Director at Master Trust Group, said: “Gold usually performs well during rate-cut cycles, especially when inflation is high. Investors can consider buying on dips as gold continues to be a hedge against inflation and global risks.”
What’s next?
Market watchers say traders should keep an eye on upcoming US jobs data in October and the Fed’s November meeting for further cues. The outlook for gold and silver will largely depend on how the global economy and monetary policy shape up in the months ahead.
