Gold and Silver Prices Today: Gold Reaches Record High of Rs 1,12,750 per 10g, Silver Hits Lifetime Peak
Gold and silver prices soared to unprecedented heights on Tuesday, with gold futures reaching an all-time high of Rs 1,12,750 per 10 grams and silver futures climbing to Rs 1,34,016 per kilogram on the Multi Commodity Exchange (MCX). This remarkable surge is attributed to expectations of further interest rate cuts by the US Federal Reserve, safe-haven buying, and favorable global market trends. Analysts suggest that the rally is likely to continue as market dynamics evolve.
Gold Prices Reach New Heights
On Tuesday, gold futures for October delivery surged by Rs 520, or 0.46%, reaching a record price of Rs 1,12,750 per 10 grams. The December contract also saw a significant increase, gaining Rs 530, or 0.46%, to settle at Rs 1,13,750 per 10 grams. This upward trend in gold prices reflects a broader market sentiment driven by the anticipation of additional interest rate cuts from the US Federal Reserve. Rahul Kalantri, vice-president of Commodities at Mehta Equities Ltd, noted that the recent 25 basis points rate cut by the Fed and the prospect of further easing by the end of the year have bolstered investor confidence. Additionally, a weaker dollar index and a declining rupee have provided further support for gold prices. Kalantri emphasized that ongoing purchases by central banks, strong inflows into exchange-traded funds (ETFs), and safe-haven buying have all contributed to the strength of gold in the market.
Silver Futures Hit Record Levels
Silver futures also experienced a significant surge on Tuesday, with December delivery rising by Rs 461, or 0.34%, to a record price of Rs 1,34,016 per kilogram. The March 2026 delivery contract climbed even higher, increasing by Rs 508, or 0.37%, to reach Rs 1,35,397 per kilogram on the MCX. This marks the highest level for silver in nearly 15 years. The rally in both gold and silver indicates a robust demand for precious metals, driven by various factors including geopolitical tensions and economic uncertainties. Kalantri pointed out that the combination of central bank purchases and strong ETF inflows has created a favorable environment for precious metals, allowing them to thrive despite their elevated prices.
Market Anticipation of Federal Reserve Signals
In international markets, gold futures for December delivery reached a record high of $3,794.82 per ounce, while silver futures for the same month saw a slight decline to $44.19 per ounce. Analysts are closely monitoring the Federal Reserve’s actions and statements, particularly those of Chair Jerome Powell, regarding the economic outlook. The Fed’s recent rate cut and indications of potential further reductions have led market participants to anticipate additional cuts in the coming months. Jigar Trivedi, a senior research analyst at Reliance Securities, highlighted that traders are awaiting Powell’s remarks and the upcoming release of the Personal Consumption Expenditures price index, which serves as the Fed’s preferred inflation gauge. These developments are expected to provide further clarity on future monetary policy.
Geopolitical Tensions and Safe-Haven Demand
Investors are increasingly concerned about ongoing geopolitical risks, including the prolonged conflict between Russia and Ukraine and tensions in the Middle East. These factors have heightened demand for safe-haven assets like gold and silver, preventing significant corrections in their prices despite the recent record highs. The combination of economic uncertainty and geopolitical instability has created a favorable environment for precious metals, as investors seek refuge in these traditional stores of value. As the market continues to react to these dynamics, the outlook for gold and silver remains strong, with analysts predicting that the rally may persist in the near future.
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