The price of gold and silver is continuously rising to all-time highs. Both shattered every record on the MCX on Monday. The US shutdown is one of the reasons why investors are looking for safe havens.
There are no indications that the current trend in gold prices will slow down. Gold futures hit a fresh high on Monday, the first trading day of the week. Silver’s luster is gradually growing, and it is likewise keeping up with gold. The United States is the most significant link in relation to the causes of this sharp increase in gold and silver prices.
Gold’s record-breaking increase on the MCX
The price of gold futures for December delivery on the Multi Commodity Exchange surged by Rs 1,447, or 1.22%, in the first trading on Monday, hitting a new record high of Rs 1,19,560 per 10 kilos. However, after this, it increased by almost Rs 1800 throughout the day’s trading and hit a new all-time high of Rs 1,20,075. The price of gold futures increased by Rs 3,222 per 10 grams, or 2.8%, during the boom-filled previous week.
Similar to gold, the price of silver futures increased significantly on Monday. In early futures trading, silver for delivery on December 5th increased by ₹1,956 (1.34%) to ₹1,47,700 per kg before bouncing down abruptly to ₹1,47,977 per kg. The price of silver futures increased by 2.72%, or ₹3,855 per kg, last week. The domestic market is also seeing a steady increase in prices; IBJA.com reports that Monday’s opening price was ₹1,19,059 for 10 kilos, up from last Friday’s closing price of ₹1,17,332 per 10 grams. In addition, the price of silver increased from ₹1,45,610 per kg to ₹1,48,550 per kg.
US link between gold and silver price increases
costs The PTI research identifies three main causes for the sharp increase in the price of gold and silver. These include the US shutdown and the growing likelihood that the Federal Reserve would lower policy rates; as a result, investors are purchasing more secure assets. Manav Modi, analyst of Precious Metal Research at Motilal Oswal Financial Services, claims that significant government projects have been halted and the distribution of crucial economic data has been postponed as a result of America’s budget impasse. Because of this, investors are becoming more risk averse and gravitating toward precious metals.
According to Aksha Kamboj, vice president of the India Bullion and Jewellers Association, heightened demand during the US shutdown caused gold prices to hit all-time highs. Even though 2025 has seen a rise of around 50% so far, investors are still favoring gold because of the ongoing uncertainties. The rise, according to Jigar Trivedi, Senior Research Analyst at Reliance Securities, is also the result of heightened demand for safe-haven assets as a result of the US closure and anticipation of more interest rate reduction from the Federal Reserve.
Which is a better investment: silver or gold?
Two precious metals that are always competing in the market race are gold and silver. One is the poor man’s gold, while the other is the safest investment alternative. Although the price of gold has been rising steadily, silver has given gold fierce competition in 2025 and offered investors higher profits.
The restricted supply and high demand have greatly increased the brilliance of silver. The demand for silver has increased in industries such as electronics, electric cars, and solar panels. Silver is also an appealing investment choice for regular investors due to its ease of acquisition, even in tiny amounts. But according to experts, investment relies on your viewpoint. Silver is a great possibility if you anticipate that corporate demand and the tech boom will continue. Gold continues to be a dependable asset for both inflation protection and financial stability.