Gold and Silver Prices Hit Record Highs: Introduction
On October 6, 2025, gold prices in Delhi surged dramatically, reflecting broader trends in global commodity markets driven by investor caution and currency fluctuations. According to data from the All India Sarafa Association, gold of 99.9% purity climbed by ₹9,700 per 10 grams to reach a new all-time high of ₹1,30,300 per 10 grams. This marked a significant jump from its closing price of ₹1,20,600 per 10 grams on the previous trading day, October 3, 2025.
For gold of 99.5% purity, prices also advanced sharply, rising by ₹2,700 to a record ₹1,22,700 per 10 grams (inclusive of taxes), up from ₹1,20,000 per 10 grams in the prior session. These increases align with heightened demand in the local bullion market, where gold is often viewed as a reliable store of value during periods of economic uncertainty.
Silver followed suit with strong gains, jumping by ₹7,400 to a fresh peak of ₹1,57,400 per kilogram (inclusive of taxes). The white metal had closed at ₹1,50,000 per kilogram on October 3, 2025. In major cities across India, such as Mumbai, Bengaluru, Chennai, Hyderabad, Delhi, and Kolkata, both gold and silver rates mirrored these national highs, influenced by festive season buying and international price movements.
International Market Trends
Globally, spot gold prices rose nearly 2% to an unprecedented $3,949.58 per ounce, while silver increased over 1% to $48.75 per ounce. These elevations in precious metals have been part of a year-long rally, with gold gaining nearly 50% in 2025 alone, supported by factors like central bank purchases and inflows into gold-backed exchange-traded funds (ETFs).
Key Drivers Behind the Surge
The recent price escalation can be attributed to several interconnected factors, as outlined by market analysts and economic reports:
- Safe-Haven Buying: Investors are flocking to gold amid escalating concerns over a potential U.S. government shutdown, global economic growth slowdowns, and geopolitical tensions. This demand has propelled gold past the $3,900 per ounce threshold for the first time. Safe-haven assets like gold tend to perform well when traditional investments, such as stocks, face volatility due to policy uncertainties or inflation fears.
- Rupee Depreciation: The Indian rupee’s weakening against the U.S. dollar has amplified local price increases, making imported gold more expensive in rupee terms. This currency factor has been a consistent contributor to domestic bullion rallies.
- Monetary Policy Expectations: Anticipation of interest rate cuts by the U.S. Federal Reserve and other central banks has lowered the opportunity cost of holding non-yielding assets like gold. Analysts predict further upside, with some forecasting gold reaching $4,200 per ounce in the coming months. Additionally, accommodative policies from global central banks have fueled the 2025 surge in precious metals.
- Seasonal and Domestic Demand: In India, the approach of festivals like Diwali has boosted retail buying, further supporting prices. Over the past two decades, gold has delivered over 1,200% returns, rising from ₹7,638 per 10 grams in 2005 to current levels, underscoring its long-term appeal as an inflation hedge.
While these trends highlight gold and silver’s strength, market participants should note that prices can be volatile. Factors like a strengthening U.S. dollar or sustained high interest rates could potentially lead to corrections. Investors are advised to consult certified financial advisors and monitor official sources like the All India Sarafa Association for the most up-to-date rates.
This report is based on verified data from reputable financial news outlets and market associations as of October 6, 2025. Prices may vary by location and purity, and taxes such as GST apply to final retail costs.
