Business: Demand for safe investments has increased due to expectations of interest rate cuts by the US Federal Reserve and geopolitical tensions. Gold prices rose by Rs 1,185 to reach an all-time high of Rs 1,28,395 per 10 grams in domestic futures trade on Thursday. At the global level, the yellow metal crossed $ 4,250 an ounce. Let us tell you that on October 10, the price of gold was Rs 1,26,000 per 10 grams. Silver also rose by Rs 8,500 to reach a new record level of Rs 1,71,500 per kg on October 10.
MCX gold price increased by 0.93 percent
On Multi Commodity Exchange (MCX), gold futures for December delivery rose by Rs 1,185, or 0.93 percent, to reach a new peak of Rs 1,28,395 per 10 grams. Extending gains for the fifth consecutive session, the yellow metal futures in February 2026 contract also touched an all-time high of Rs 1,29,380 per 10 grams, up by Rs 977 or 0.76 per cent.
Silver increased by 1.51 percent on MCX
Like the yellow metal, silver prices on MCX also hit new highs. Silver for December delivery rose by Rs 2,454, or 1.51 per cent, to a record Rs 1,64,660 per kg. Similarly, the March 2026 contract continued its winning streak for the fourth consecutive session and surged Rs 2,699, or 1.6 per cent, to hit a new high of Rs 1,64,958 per kg on the commodity exchange.
Gold prices increased due to these reasons
Darshan Desai, CEO of Aspect Bullion and Refinery, said gold prices remained at record highs due to expectations of further interest rate cuts by the Fed and ongoing tensions between Washington and Beijing. Desai said gold will remain a safe haven asset due to concerns over rising and potentially unsustainable debt levels, a weak dollar and continued buying by central banks.
Dollar declined by 0.17 percent
The dollar index, which measures the dollar’s strength against six currencies, was trading 0.17 per cent lower at 98.63, leading to further rise in bullion prices.
Gold and silver prices increased in the global market
In the international market, Comex gold futures reached a record level of $ 4,254.80 an ounce. Silver futures also increased in the global markets in a similar manner. Silver for December delivery hit an all-time high of $52.86 an ounce.
Fed’s comments had an impact
Jigar Trivedi, senior research analyst at Reliance Securities, said gold prices rose above $4,250 an ounce on Thursday. It kept moving towards a new record. This was due to demand for safe investments and rising expectations of soft monetary policy in the US.
Trivedi said recent comments by Federal Reserve Chairman Jerome Powell have highlighted signs of weakening in the labor market. Due to this, investors are expecting a cut of 25 basis points in this month’s meeting, and there is a possibility of a cut in December also.
US-China trade tensions increase demand for safe investments
On Wednesday, US officials criticized China’s tough restrictions on rare earth exports. He warned that this would pose a threat to global supply chains and hinted at possible retaliation from Washington.
Meanwhile, US Treasury Secretary Scott Bessant said Washington could consider imposing export limits or tariffs on Russian oil imports from China if coordinated with European partners. This step may create further tension in trade relations and increase uncertainty in the market.
Bullion prices expected to rise in the coming weeks
Analysts say that this week there has been a record rise in the prices of both gold and silver. The reason for this is the huge investment by investors in precious metals. Any confirmation of interest rate cut by the Fed could push bullion prices to new record highs in the coming weeks.
