Gold, silver prices hit record highs on MCX; Key levels and expert targets to watch

By Admin

17 Oct, 2025

Gold and silver prices soared to unprecedented levels on the Multi Commodity Exchange (MCX) on Friday, October 17, reflecting strong global cues and robust domestic demand. The rally, driven by a weaker dollar, global economic uncertainty, and expectations of US Federal Reserve rate cuts, has made precious metals the top-performing assets of the season.

Gold and Silver Touch Record Peaks

MCX Gold December futures surged by over ₹2,400 (nearly 2%) to touch a record high of ₹1,32,293 per 10 grams. Similarly, MCX Silver December futures climbed by ₹2,750 (1.6%) to hit an all-time high of ₹1,70,415 per kg. The surge followed global market trends where bullion prices continued to strengthen amid rising geopolitical and economic concerns.

In international markets, gold is on track for its best weekly performance since 2008. Heightened US-China trade tensions, growing political instability, and expectations of further US Federal Reserve rate cuts have all contributed to the rally.

The Dollar’s Weakness Fuels the Rally

A major driver of the price spike is the weakening US dollar. The dollar index slipped by 0.20%, making gold cheaper in other currencies and thereby boosting global demand. This depreciation has encouraged investors to move toward safe-haven assets like gold and silver.

Domestic Demand Remains Strong

Interestingly, despite the record prices, demand in India has remained resilient. Ajoy Chawla, CEO of Titan’s jewellery division (Tanishq), shared that customers are rushing to purchase gold out of fear that prices might rise even higher. This “fear of missing out” (FOMO) phenomenon has kept the domestic gold market buoyant even at record valuations.

So far this year, domestic spot gold prices have jumped over 65%, supported by central bank buying, strong ETF inflows, and ongoing political and economic uncertainties.

Expert Insights: Key Levels to Watch

According to Manoj Kumar Jain of Prithvifinmart Commodity Research:

• Gold (USD): Support at $4,240 and $4,180; Resistance at $4,355 and $4,400 per troy ounce.
  
  

• Silver (USD): Support at $52.40 and $51; Resistance at $54.20 and $55 per troy ounce.
  
  

• Gold (INR): Support at ₹1,28,000 and ₹1,26,600; Resistance at ₹1,31,000 and ₹1,33,500.
  
  

• Silver (INR): Support at ₹1,66,000 and ₹1,64,400; Resistance at ₹1,69,200 and ₹1,71,000.
  
  

Jain suggests buying gold and silver on dips in a staggered manner and advises investors to avoid short selling in the current bullish scenario.

Similarly, Rahul Kalantri, VP of Commodities at Mehta Equities, shared his technical outlook:

• Gold (USD): Support at $4,300 and $4,265; Resistance at $4,368 and $4,395.
  
  

• Silver (USD): Support at $53.50 and $52.70; Resistance at $54.55 and $55.20.
  
  

• Gold (INR): Support at ₹1,29,270 and ₹1,28,380; Resistance at ₹1,30,850 and ₹1,31,500.
  
  

• Silver (INR): Support at ₹1,66,550 and ₹1,65,650; Resistance at ₹1,68,850 and ₹1,69,950.
  
  

What’s Driving the Precious Metals Boom?

Renisha Chainani, Head of Research at Augmont, attributes the precious metal rally to political and economic uncertainties, expectations of interest rate cuts, strong central bank purchases, and heavy inflows into ETFs. Together, these factors are creating an environment of sustained bullishness for gold and silver.

Investor Takeaway

While the outlook for precious metals remains optimistic, experts caution that the market can be volatile. Investors are advised to consult certified financial advisors before making major investment decisions. Given the ongoing global uncertainties and the dollar’s weakness, gold and silver could continue to shine in the near term.

Disclaimer: This article is for educational purposes only. The views and targets mentioned are those of individual analysts and may vary based on changing market conditions. Investors should always seek professional advice before making investment decisions.