Gold Prices Passed ₹1,22,000 Mark on MCX on October 8: Check Factors Driving the Rally

Gold prices surged to unprecedented levels on the Multi Commodity Exchange (MCX) during Wednesday’s trading session, supported by a combination of strong domestic demand, global market cues, and increasing economic uncertainty. The rally also reflects rising expectations of interest rate cuts by the US Federal Reserve.

For the first time ever, MCX Gold futures breached the ₹1,22,000 mark per 10 grams, hitting a record high of ₹1,22,165. As of 9:40 am, December gold futures were trading 0.86% higher at ₹1,22,149. Silver followed suit, with December futures climbing 1.14% to ₹1,47,450 per kilogram.

In the international market, US gold futures for December delivery surged past the $4,000 mark, reaching a new all-time high of $4,037 per troy ounce.

Key Drivers Behind Gold’s Rally

• Domestic and global demand for gold remains strong, with central banks continuing to add to their gold reserves. This has provided a solid base for the metal's upward momentum.
• The ongoing US government shutdown, now in its seventh day, has raised concerns over fiscal stability and delayed critical economic data releases, driving investors toward safe-haven assets like gold.
• Markets are increasingly pricing in rate cuts from the US Federal Reserve amid signs of economic slowdown. Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, making it more attractive.
• A softer dollar has further boosted gold’s appeal, especially for international buyers. The inverse correlation between gold and the dollar has amplified price movements in recent weeks.
• Exchange-traded funds backed by physical gold have seen consistent inflows this year, indicating rising investor confidence in the metal as a long-term hedge.
• Ongoing global tensions, coupled with economic uncertainties in major markets, have increased gold’s status as a safe-haven asset. Investors are seeking refuge from volatile equity and bond markets.

Also Read: Gold and Silver Prices Remain Firm: Check Rates In Your City On October 8, 2025

Gold Up Over 55% in 2025 So Far

Spot gold prices in the domestic market have surged by more than 55% year-to-date, reflecting the broad-based bullish sentiment. The upward trend is likely to persist as long as macroeconomic risks remain elevated and central banks maintain a dovish stance.

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