Gold prices on Multi Commodity Exchange of India (MCX) jumped above ₹1.30 lakh per 10 grams amid strong demand on account of the Diwali 2025 festival. Silver prices also rallied 1% to above ₹1.58 lakh level.
On Monday, MCX gold rate surged by ₹3,580, or 2.82%, to end at ₹1,30,588 per 10 grams level. MCX silver price also ended higher by ₹1,571, or 1.00%, at ₹1,58,175 per kg.
The Indian stock market and commodity markets are closed for normal trading sessions on Tuesday, 21 October 2025. However, the BSE, NSE, MCX and NCDEX will conduct a special Diwali today for one hour to mark the auspicious new Hindu calendar year.
The Diwali Muhurat trading session will be held in the Indian stock market today from 1:45 pm to 2:45 pm. Normal trading in commodities and stocks will take place during this special session.
Meanwhile, in the international market, gold prices today fell on profit booking after bullion hit a fresh high in the previous session.
Spot price eased 0.3% to $4,340.99 per ounce, having hit an all-time high of $4,381.21 on Monday. US gold futures for December delivery were flat at $4,357.80 per ounce. Gold prices have been hitting record highs on hopes of further US Federal reserve interest rate cuts and strong safe-haven demand.
Spot price declined 1.2% to $51.83 per ounce, platinum slipped 0.7% to $1,627.53 and palladium gained 0.1% to $1,497.62.
“Gold prices are witnessing buyer interest at lower levels. Ongoing uncertainties, including the fragile ceasefire in West Asia, the prolonged US government shutdown, and expectations of a Federal Reserve rate cut, continue to support demand during price dips,” said Darshan Desai, CEO – Aspect Bullion & Refinery.
Markets are fully pricing in for a 25 bps Fed rate cut this month, and another one in December, according to the CME FedWatch Tool. Gold, a non-yielding asset, tends to do well in a low interest rate environment.
“In India, strong festive demand for Diwali and the upcoming wedding season are also likely to keep gold prices supported,” Desai added.
US Inflation Data Eyed
US CPI data data, scheduled for release on Friday after a delay due to the government shutdown, is expected to show that the index rose 3.1% on a year-over-year basis in September, according to economists polled by Reuters.
The U.S. government shutdown stretched to its 20th day on Monday, after senators failed for the tenth time last week to break the impasse. White House economic adviser Kevin Hassett said on Monday the shutdown was likely to end this week.
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