Current gold rate: Ahead of the RBI MPC meeting, experts present their investment strategy while concentrating on the strengthening of the INR vs the USD.

Amid global uncertainty and the possibility of a US government shutdown, demand for gold as a safe haven drove prices to an all-time high of ₹1,17,788 per 10 kilos. Strong investor interest in precious metals is reflected in silver's recent highs.

Current gold rate: In line with significant increases elsewhere, gold prices rose substantially on Tuesday, rising ₹1,444 to a new all-time high of ₹1,17,788 per 10 kilos in the domestic futures market.

Investor worries about a possible US government shutdown and rising anticipation of additional interest rate cuts by the Fed drove the rally.

For the fourth straight day, December gold futures on the MCX rose ₹1,444, or more than 1%, to reach a new high of ₹1,17,788 per 10 kilos. Similarly, the February 2026 contract reached a new lifetime high of ₹1,19,052 per 10 grams, up ₹1,578 or 1.34%.

Tuesday saw silver soar to new heights, with December futures on the Multi Commodity Exchange (MCX) surging ₹1,231, or 0.86%, to hit an all-time high of ₹1,44,330 per kilogram.

Why are the prices of gold and silver increasing?
Gold prices are rising due to increased demand for safe haven assets amid global unpredictability, worries about a possible US government shutdown, and expectations of US Fed rate reduction.

"Gold and silver maintained their extremely positive trend at the beginning of the week and increased their gain. "Safe-haven demand amid fears of a possible US government shutdown and expectations of additional Federal Reserve rate cuts drove precious metals prices to a record high," stated Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

Kalantri emphasized that the possibility of a shutdown increased because negotiations between President Trump and Congress were unable to obtain short-term funding.

"Market anxieties were exacerbated by the imposition of additional US tariffs on trucks, patented medications, and other goods. According to Kalantri, the dollar index is trading below 98, which is also helping the price of gold and silver.

Gold prices are also being impacted by the rupee's depreciation. For investors who already own gold, a weak rupee increases the price of the yellow metal in India.

Watching the RBI MPC result
The three-day Monetary Policy Committee (MPC) meeting of the Reserve Bank of India (RBI) is set to end on Wednesday, October 1, 2025, having begun on September 29.

In order to help the rupee maintain some ground against the US dollar, the central bank is anticipated to maintain stable interest rates. The US Fed has hinted at more rate cuts this year, which should cause the currency to drop a little.

"More rate cuts might put additional pressure on the already weak rupee and narrow interest-rate differentials with the US and lower risk premia. However, given rising tariffs and the recent entry of services into the trade war, India's relative decline in export competitiveness relative to EM Asia would, in theory, justify some adjustment through a lower rupee relative to its peers. Instead of being interpreted as a disincentive to rate-easing, such depreciation would serve as a natural stabilizer for a weaker CAD, according to a report from Emkay Global Financial Services.

What kind of approach should you take when trading gold?
The executive chairperson of Aspect Global Ventures and vice president of the India gold and Jewellers Association (IBJA), Aksha Kamboj, claims that gold has become the preferred investment in India. The strains of global demand for safe havens and a declining rupee are currently helping to boost gold prices.

According to the recent market monitor, the increasing trend is consistent with gold futures reaching new highs and receiving inflows into gold ETFs. The price has clearly appreciated as it has risen from more recent levels. Analysts advise that the price of gold should stay in its recent high range unless there are shocks in global monetary policy or the dollar's strength returns, Kamboj stated.

Mehta Equities' Rahul Kalantri added, "Gold has resistance at $3872-3895 and support at $3830-3810. The barrier for silver is between $47.35 and 47.70, while the support is between $46.60-46.30. Support for gold in INR is between Rs. 15,000 and Rs. 1,14,680, while resistance is between Rs. 1,15,550 and Rs. 1,15,700. The resistance of silver is at Rs. 1,43,950 and 1,44,800, while the support is at Rs. 1,42,450-1,41,850.