Gold Prices Surge to Rs 1.26 Lakh per 10 Grams; Silver Exceeds Rs 1.62 Lakh per Kg
Gold and silver prices have surged to unprecedented levels as the festive season approaches, with Dhanteras and Diwali on the horizon. On Tuesday, both metals reached new highs in domestic trading, driven by escalating tensions in US-China trade relations and expectations of interest rate cuts from the US Federal Reserve. This environment has heightened the appeal of gold and silver as safe-haven investments, leading to record gains in their futures contracts.
Record Highs in Gold Prices
On the Multi Commodity Exchange (MCX), gold futures for December delivery rose by ₹2,301, or 1.84%, reaching ₹1,26,930 per 10 grams. Similarly, the February 2026 contract saw an increase of ₹2,450, or 1.94%, bringing its price to ₹1,28,220 per 10 grams. According to Manav Modi, a precious metals analyst at Motilal Oswal Financial Services, the surge in gold prices is attributed to renewed US-China trade tensions and the anticipation of rate cuts by the Federal Reserve. This combination has significantly boosted safe-haven demand for gold, which has seen a remarkable 60% increase year-to-date, surpassing the USD 4,100 mark for the first time.
Silver Prices Soar
Silver futures also experienced substantial gains, with December delivery contracts climbing by ₹8,055, or 5.2%, to reach ₹1,62,700 per kilogram. The March 2026 silver futures contract rose by ₹9,257, or 6%, reaching ₹1,63,549 per kilogram. Internationally, silver prices have also hit record highs, with December delivery contracts on Comex rising to USD 52.49 per ounce. Modi noted that the upward trend in silver prices is driven by severe supply constraints in the global market, which are affecting premiums and pushing prices higher.
Geopolitical Tensions and Economic Impact
The recent appreciation in precious metals coincides with heightened geopolitical tensions, particularly following China’s announcement to expand rare-earth export controls. This move has prompted US President Donald Trump to threaten 100% tariffs on Chinese imports and impose export restrictions on essential US-made software starting November 1. Additionally, the ongoing US federal government shutdown, now in its 13th day, is beginning to adversely affect the nation’s economic performance, as noted by Modi. Investors are closely monitoring these developments, as they could have significant implications for market stability.
Market Outlook and Federal Reserve Insights
As investors await insights from Federal Reserve Chair Jerome Powell at the National Association for Business Economics (NABE) annual meeting, market analysts are keen to understand the central bank’s stance on interest rates. Jigar Trivedi, a senior research analyst at Reliance Securities, highlighted that several key economic indicators, including the Consumer Price Index (CPI) and retail sales data, are set to be released later this week. However, if the government shutdown continues, these reports, along with employment data, may be delayed, adding further uncertainty to the market.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
Follow Us on Twitter, Instagram, Facebook, & LinkedIn
