SRINAGAR: Gold and silver prices on the Multi Commodity Exchange (MCX) soared to fresh record highs on Tuesday, driven by global cues, US tariff concerns, and strong festive demand, reports The Economic Times.
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MCX Gold October futures surged nearly 2 per cent to an all-time high of Rs 1,14,163 per 10 grams in morning trade, while MCX Silver December futures advanced over 1 per cent to touch Rs 1,34,980 per kg. By 3:05 pm, gold futures were trading 1.56 per cent higher at Rs 1,13,980 per 10 grams, and silver futures were up 0.94 per cent at Rs 1,34,806 per kg.
Analysts attributed the rally to multiple factors, including a weaker US dollar, central bank buying, and safe-haven demand amid global uncertainty. Spot gold prices in India have already surged 47 per cent this year.
“The US Fed’s 25 basis points rate cut and expectations of further easing by year-end have lifted sentiment for gold. A subdued dollar index and weaker rupee added momentum, while central bank purchases, ETF inflows, and safe-haven buying further supported the rally,” said Rahul Kalantri, Vice President of Commodities at Mehta Equities.
The dollar index dipped 0.10 per cent to 97.20, making bullion more attractive in other currencies. Markets are now factoring in two more US rate cuts this year, with CME FedWatch data indicating a 90 per cent probability of a cut in October and a 75 per cent chance of another in December, Reuters reported.
Aksha Kamboj, Vice President of the India Bullion and Jewellers Association (IBJA), said buyers were holding their gold positions firmly. “Rather than pulling back, gold prices have risen further, and those who invested appear unwilling to offload,” she noted, as per Times of India.
Industry experts expect festive demand to provide additional support, reinforcing gold’s position as a safe-haven asset amid volatile global conditions.