Gold and silver prices continued their record-breaking rally on Tuesday, with gold futures reaching an all-time high of Rs 1,12,750 per 10 grams and silver futures hitting a lifetime high of Rs 1,34,016 per kilogram on the Multi Commodity Exchange (MCX).The surge was driven by expectations of further US Federal Reserve interest rate cuts, safe-haven buying, and global market trends.Gold futures for October delivery jumped Rs 520, or 0.46%, to Rs 1,12,750 per 10 grams. The December contract gained Rs 530, or 0.46%, to Rs 1,13,750 per 10 grams, marking another record.
Silver futures surge
Silver futures for December delivery rose Rs 461, or 0.34%, to a record Rs 1,34,016 per kilogram. March 2026 delivery climbed Rs 508, or 0.37%, to Rs 1,35,397 per kilogram on MCX, hitting a lifetime high.“The rally in gold and silver showed no signs of slowing, with both metals soaring to fresh records. Gold surged to lifetime highs while silver reached its strongest level in nearly 15 years,” said Rahul Kalantri, vice-president of Commodities, Mehta Equities Ltd.Kalantri added that the Fed’s 25 basis points interest rate cut and prospects of more easing by year-end boosted sentiment, while a subdued dollar index and a weaker rupee provided further support. “Persistent central bank purchases, strong ETF inflows, and safe-haven buying further fuelled the precious metals’ strength,” he noted, as reported by PTI.
Markets await Powell and Fed cues
In overseas markets, gold futures for December delivery rose to a record $3,794.82 per ounce, while silver futures for December delivery slipped slightly to $44.19 per ounce.“Gold hit a fresh record high, supported by hopes of more interest rate cuts from the Federal Reserve this year. The Fed delivered its first rate cut of the year last week and signalled further reductions ahead as the labour market weakens. This has prompted market participants to price in almost two more 25 basis point reductions at the remaining meetings this year,” said Jigar Trivedi, senior research analyst at Reliance Securities, quoted by PTI.Trivedi added that traders are closely watching Fed chair Jerome Powell’s remarks on the economic outlook, along with Friday’s release of the Personal Consumption Expenditures price index, the Fed’s preferred inflation gauge, for further guidance on monetary policy.Investors also highlighted that ongoing geopolitical risks, including the prolonged Russia-Ukraine war and conflicts in the Middle East, have heightened safe-haven flows. This prevented sharp corrections in gold and silver despite elevated prices.
