Gold Prices Hit Record ₹1,20,900 Ahead of Diwali; Experts Advise Buying Now

Gold Prices Touch Historic High

Gold prices surged to an all-time high of ₹1,20,900 per 10 grams in domestic futures on Tuesday, driven by global economic uncertainty, a prolonged US government shutdown, and expectations of Federal Reserve rate cuts.

On the Multi Commodity Exchange (MCX):

• December 2025 Gold Futures jumped ₹651 (0.54%) to ₹1,20,900 per 10g.
• February 2026 Contract rose ₹648 (0.53%) to a lifetime high of ₹1,22,231 per 10g.

Manav Modi, Analyst at Motilal Oswal Financial Services, noted:

“Gold is rallying on the back of US political uncertainty and growing expectations of interest rate cuts by the Federal Reserve.”

Silver Prices Also Surge

Silver mirrored gold’s uptrend, with prices nearing record levels:

• March 2026 Silver Futures advanced ₹327 (0.21%) to ₹1,49,500 per kg, just shy of the previous record ₹1,49,605.
• Spot Silver on MCX climbed ₹281 (0.19%) to around ₹1,47,800 per kg.

Globally, Comex Gold Futures breached the $4,000 per ounce mark for the first time, while silver traded near $48.43 per ounce.

Global Factors Driving the Rally

Analysts attribute the surge to several factors:

• US Government Shutdown: Disruptions in federal programs and delayed economic data (like jobs reports) have increased safe-haven demand.
• Fed Rate Cut Expectations: Investors anticipate two interest rate cuts this year, making gold more attractive.
• Central Bank Buying: Sustained gold accumulation by global central banks has added to the upward momentum.

Expert Investment Calls

Market expert Anuj Gupta recommends:

• Gold: Buy at ₹1,19,500 | Stop Loss: ₹1,18,500 | Target: ₹1,20,500
• Silver: Buy at ₹1,46,000 | Stop Loss: ₹1,45,000 | Target: ₹1,48,500

Is This Diwali a Good Time to Buy Gold?

According to Kirit Bhansali, Chairman of GJEPC (Gems & Jewellery Export Promotion Council), investors should buy gold before Diwali rather than wait:

“Given global uncertainties and strong demand, a major price correction seems unlikely. Gold prices may continue rising month after month, impacting consumer affordability if delayed.”

Outlook

With global economic volatility, a weaker dollar, and strong institutional buying, analysts believe gold may remain bullish through the festive season. For investors, early festive purchases could help avoid higher prices in the coming weeks.