Investors and consumers are watching in awe as gold prices surged to fresh, historic highs on Monday, October 6, 2025. The yellow metal’s safe-haven appeal has been polished to a brilliant shine amidst growing global economic uncertainties, particularly concerns over a potential U.S. government shutdown and persistent inflation.
On the Multi Commodity Exchange (MCX), gold futures for December expiry breached a new milestone, hitting an all-time high of ₹1,20,075 per 10 grams. The rally extended to longer-term contracts, with February and April futures also hitting lifetime highs of ₹1,21,350 and ₹1,22,750, respectively.
Gold Prices in Major Indian Cities on October 6, 2025
For those looking to buy or sell, here are the latest retail prices for 10 grams of 22-carat and 24-carat gold across major Indian cities today:
| City | 24-Carat Gold (per 10g) | 22-Carat Gold (per 10g) |
| Delhi | ₹1,20,920 | ₹1,10,850 |
| Mumbai | ₹1,20,770 | ₹1,10,700 |
| Kolkata | ₹1,20,770 | ₹1,10,700 |
| Chennai | ₹1,20,660 | ₹1,10,600 |
| Bengaluru | ₹1,20,770 | ₹1,10,700 |
| Hyderabad | ₹1,20,770 | ₹1,10,700 |
| Ahmedabad | ₹1,20,820 | ₹1,10,750 |
| Jaipur | ₹1,20,920 | ₹1,10,850 |
| Lucknow | ₹1,20,920 | ₹1,10,850 |
Source: Data according to GoodReturns
What’s Driving This Record-Breaking Rally?
Several converging factors are fuelling this unprecedented surge in gold prices:
- Safe-Haven Demand: As highlighted by Axis Securities, “Renewed concerns over the U.S. government shutdown have reinforced safe-haven demand,” pushing investors towards the perceived security of precious metals.
- Inflation & Stagflation Fears: Ross Maxwell, Global Strategy Lead at VT Markets, notes that the potential for stagflation (slow economic growth plus high inflation) is a key driver, making gold an attractive hedge.
- Institutional Buying: The positive momentum is strongly supported by consistent purchases from central banks and rising inflows into gold-backed exchange-traded funds (ETFs).
- Geopolitical Tensions: Ongoing global uncertainties continue to underpin gold’s role as a reliable store of value during turbulent times.
Expert Take: Is Gold Overbought or Still a Good Buy?
While the rally is strong, experts advise a measured approach. “Technically, gold is in overbought territory,” warns Ross Maxwell. He suggests that any immediate price drops are more likely due to profit-taking rather than a change in the fundamental upward trend.
The long-term outlook remains positive. Factors like central bank buying and geopolitical risk continue to support the case for gold. For investors, Maxwell suggests that a dollar-cost averaging strategy is a wise way to build a position and leverage gold’s reputation as a trustworthy store of value.
While the current prices may seem daunting, the underlying economic conditions suggest that gold’s role as a critical portfolio diversifier is more important than ever.
