Gold, silver regain sheen on Diwali as safe-haven demand, value buying rise

New Delhi: Gold and silver prices regained their shine on Monday, rising in the domestic futures market as investors turned to value buying after a brief pullback from record highs and renewed appetite for safe haven assets amid global uncertainties.

On the Multi Commodity Exchange (MCX), gold futures for December delivery climbed Rs 982, or 0.77 per cent, to Rs 1,27,990 per 10 grams in a business turnover of 14,913 lots.

The yellow metal had surged to an all-time high of Rs 1,32,294 per 10 grams on Friday before settling at Rs 1,27,008 per 10 grams, snapping a five-day rally.

The February 2026 contract for gold also advanced Rs 1,680 or 1.31 per cent, to Rs 1,29,743 per 10 grams in 1,862 lots. It had touched a fresh peak of Rs 1,34,024 per 10 grams in the previous market trade.

Last week, gold futures rose by Rs 5,644, or 4.65 per cent, reflecting strong investor sentiment.

Silver futures, too, joined the recovery. The white metal for December delivery rallied by Rs 1,522 or 0.97 per cent to Rs 1,58,126 per kilogram in a business turnover of 23,985 lots. It had touched an all-time high of Rs 1,70,415 per kg on the MCX.

The March 2026 contract increased by Rs 1,292 or 0.82 per cent to Rs 1,59,361 per kg in 5,787 lots. It had scaled a lifetime high of Rs 1,72,350 per kilogram in the previous trade.

Over the past week, silver prices have risen Rs 10,138, or 6.92 per cent, supported by industrial demand and persistent supply constraints.

Analysts said safe-haven demand remains resilient amid heightened geopolitical tensions, global trade-related uncertainties, and concerns over a prolonged US government shutdown.

In the global markets, both gold and silver witnessed renewed buying after a brief correction. On the Comex, gold futures for December delivery advanced by USD 62.46, or 1.48 per cent, to USD 4,275.76 per ounce after touching an all-time high of USD 4,392 per ounce on Friday.

"Gold has surged more than 65 per cent so far this year, buoyed by a potent mix of central-bank buying, robust ETF inflows, and aggressive positioning on expectations of US monetary easing," Riya Singh, Research Analyst, Commodities and Currency, Emkay Global Financial Services, said.

She added that the weakening dollar and speculation that the US Federal Reserve could announce an outsized rate cut before year-end have strengthened the outlook for bullion.

"Silver has also gained substantially, though ETF inflows into the white metal have started to plateau, suggesting some fatigue in that segment," Singh said.

Silver futures on Comex rose 1.50 per cent to USD 50.85 per ounce after a volatile week in which the metal had hit a record of USD 53.76 per ounce before sliding 6 per cent in its sharpest fall in six months.

According to commodities market experts, last week's correction was triggered by easing fears over US credit conditions and signs of improvement in trade relations between Washington and Beijing, which reduced immediate safe-haven demand.

Investment sentiment also improved after US President Donald Trump's remarks helped ease trade tensions, while upbeat earnings from regional banks lifted equities and Treasury yields, weighing on gold's safe-haven appeal.

Despite corrections, an expert said, "The broader outlook for bullion remains positive. They expect gold and silver to stay supported in the coming weeks on continued geopolitical uncertainty, central bank buying, and expectations of further monetary easing by the US Federal Reserve."