NEW DELHI: Gold maintained its record-breaking momentum on Tuesday, climbing Rs 520 to reach an all-time high of Rs 1,12,750 per 10 grams in the domestic futures market. The surge was driven by strong global cues, expectations of further US Federal Reserve rate cuts, and continued safe-haven demand ahead of Fed Chair Jerome Powell’s upcoming remarks.
On the Multi Commodity Exchange (MCX), October gold futures gained Rs 520, or 0.46%, hitting a lifetime high of Rs 1,12,750 per 10 grams. December contracts advanced Rs 530, or 0.46%, to Rs 1,13,750 per 10 grams, also setting a new record.
Silver mirrored this upward trend, with December futures rising Rs 461, or 0.34%, to a record Rs 1,34,016 per kilogram. March 2026 silver contracts jumped Rs 508, or 0.37%, to touch a lifetime high of Rs 1,35,397 per kilogram on the MCX.
Analysts pointed to multiple factors behind the sustained rally in bullion, including the Fed’s first rate cut of the year, prospects of additional easing, geopolitical uncertainties boosting safe-haven demand, and continued central bank purchases.
“The rally in gold and silver shows no signs of slowing, with both metals reaching new highs. Gold surged to lifetime highs while silver touched levels not seen in nearly 15 years,” said Rahul Kalantri, Vice President of Commodities at Mehta Equities Ltd.
Kalantri noted that the Fed’s 25-basis-point rate cut and expectations of further easing by year-end have strengthened market sentiment. A subdued dollar index and a weaker rupee have also supported domestic bullion prices. “Persistent central bank purchases, strong ETF inflows, and safe-haven buying have further fueled the metals’ rally,” he added.
In global markets, December gold futures climbed to a record USD 3,794.82 per ounce. “Gold reached a fresh high, underpinned by expectations of additional Fed rate cuts this year. After last week’s first rate reduction, the Fed signaled potential further cuts as labor market conditions soften, with the market pricing in nearly two more 25-basis-point reductions in the remaining meetings,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Meanwhile, December silver futures slipped slightly to USD 44.19 per ounce. Trivedi added that traders are closely watching Fed Chair Powell’s remarks on the economic outlook later in the day, along with Friday’s release of the Personal Consumption Expenditures price index, the Fed’s preferred inflation gauge, for clues on future monetary policy.
Investors also noted that geopolitical tensions, including the prolonged Russia-Ukraine war and ongoing Middle East conflicts, have bolstered safe-haven demand, preventing sharp corrections in bullion prices despite elevated levels.
