On Friday, October 17, 2025, Multi Commodity Exchange (MCX) saw its most dramatic day this year as gold prices cracked the ₹1.32 lakh mark per 10 grams and silver futures nudged past ₹1.70 kilo‑gram, sending traders scrambling for a piece of the rally.
Record‑Breaking Prices on the MCX
The December 5 gold contract opened at ₹1,31,026 per 10 g, a modest gain of ₹1,174 (0.90%). Within minutes, the price surged, touching a fresh all‑time high of ₹1,32,294 and closing at ₹1,32,485 – a jump of ₹1,633 (1.26%) from the previous close of ₹1,29,852. Silver futures weren’t far behind; they started the session at ₹1,68,100 per kg, climbed to ₹1,70,415, and settled at ₹1,68,750, up ₹1,087 (0.65%) from the prior day’s ₹1,67,663.
Spotting the same upward momentum, the February 2026 gold futures contract added a heftier lift, rising ₹2,114 (1.61%) to trade at ₹1,33,211 per 10 g. These numbers were sourced from India TV News, which also broke down regional price variations – Kolkata’s 24‑carat gold fetched ₹1,32,770 per 10 g, while 22‑carat hovered around ₹1,21,700.
Global Context: International Cues Behind the Surge
While domestic contracts were on fire, the world market told a slightly different story. On the same day, gold slipped to $4,250.59 per troy ounce, down 1.80% from the previous session, according to Trading Economics. Yet, earlier Friday, it had topped $4,340 per ounce, positioning itself for the strongest weekly gain since March 2020. Over the past month, the metal rallied 16.65%, and year‑on‑year it was up a staggering 56.20%.
Analysts attribute this paradox to a classic safe‑haven rally: heightened geopolitical jitters, a wobbling US dollar, and the looming Indian festive season, especially Diwali, which traditionally triggers a surge in gold buying.
Technical Outlook and Analyst Views
Just days before the breakout, Jateen Trivedi, Vice President of Research Analysis at LKP Securities had warned of a bearish crossover, noting that the short‑term EMA 8 had slipped below EMA 21. He pegged immediate resistance between ₹1,21,800‑₹1,22,650 and support near ₹1,19,800‑₹1,19,100. The reality on October 17 proved his support levels held firm, while the resistance was shattered.
Trivedi’s post‑trade comment highlighted an “unusual profit‑booking wave followed by a rapid reversal as domestic demand kicked in.” He also flagged the gold‑silver ratio, which lingered around 80, indicating a relatively balanced market – a nuance often missed by casual observers.
Regional Price Snapshots and Consumer Impact
Beyond Kolkata, major metros mirrored the national trend. In Delhi, the 24‑carat price hovered at ₹1,32,350, while Mumbai reported ₹1,32,420. Smaller cities like Jaipur and Lucknow saw marginally lower rates, but the gap narrowed to under ₹500 per 10 g – a stark contrast to the wide disparities witnessed a year ago.
For the average Indian consumer, the timing is both a boon and a dilemma. On one hand, Diwali shoppers can lock in a premium price now, potentially bagging a higher resale value later. On the other, the surge squeezes middle‑class budgets, pushing many to consider alternative stores of value such as digital gold or sovereign gold bonds.
What This Means for Investors Ahead of Diwali
Historically, Diwali sees a 10‑15% spike in gold demand, driven by cultural gifting traditions and the perception of gold as a hedge against inflation. With the current trajectory, experts forecast that the festive rush could push intra‑day volumes beyond 250 tons, a record for the quarter.
- Expect heightened volatility in the next two weeks as speculative buying meets genuine festive demand.
- Short‑term traders might target the ₹1,34,000‑₹1,35,000 band as the next resistance zone.
- Long‑term investors should watch RBI policy cues; any hint of easing could reinforce the upward bias.
Meanwhile, silver, often the underdog, is set to benefit from industrial demand in electronics and renewable energy sectors, potentially extending its rally beyond the festive period.
Key Facts
- Gold December 5 contract closed at ₹1,32,485 per 10 g on October 17, 2025.
- Silver December 5 futures ended at ₹1,68,750 per kg.
- Global gold price hovered around $4,340/oz earlier Friday.
- Year‑on‑year gold price increase: 56.20% (Trading Economics).
- Analyst Jateen Trivedi flagged support at ₹1,19,800‑₹1,19,100 before the rally.
Frequently Asked Questions
How will the record gold price affect Diwali shoppers?
Shoppers are likely to face higher upfront costs, but locking in gold now could yield a resale premium after the festive season, especially if prices keep climbing. Many retailers will also offer discounts on jewelry to offset the surge, making the timing a mixed bag.
What drove the sudden jump in silver futures?
Silver benefitted from a twin boost: a global rally in safe‑haven assets and rising demand from the electronics sector, where silver is used in conductive inks. The price spike also reflected traders hedging against a potential gold pull‑back.
Is the MCX rally sustainable in the long term?
Sustainability hinges on a few factors: continued global uncertainty, RBI’s monetary stance, and domestic demand ahead of festivals. If inflation remains sticky, investors may keep turning to gold, supporting prices. A sudden policy shift could, however, temper the rally.
What are the key technical levels traders should watch?
For gold, the next resistance zone sits around ₹1,34,000‑₹1,35,000. Support is likely to hold near ₹1,32,000, which aligns with the recent low. Silver’s immediate resistance lies near ₹1,72,000 per kg, while support rests around ₹1,66,000.
How do international gold price trends influence Indian futures?
Indian futures tend to mirror global spot movements with a short lag. When the London bullion market spikes, MCX reacts within hours, adjusting for rupee volatility and local demand. Hence, any sustained global rally, especially from the US and Europe, will likely keep Indian prices on an upward trajectory.
