Mumbai– Gold prices surged to a fresh record high on Wednesday, crossing Rs 1.27 lakh per 10 grams on the Multi Commodity Exchange (MCX), as global bullion markets rallied amid rising U.S.-China trade tensions and growing expectations of interest rate cuts by the U.S. Federal Reserve.
At the opening, MCX gold futures climbed 0.52 percent to Rs 1,26,915 per 10 grams, compared to the previous close of Rs 1,26,256. Shortly after, prices touched an all-time high of Rs 1,27,500 per 10 grams.
Silver followed the upward trend, opening 0.18 percent higher at Rs 1,59,800 per kilogram and hitting an intra-day peak of Rs 1,61,418. During early trade, gold was up 0.46 percent at Rs 1,26,835 per 10 grams, while silver rose 0.52 percent to Rs 1,60,333 per kilogram.
In global markets, spot gold hovered near record levels, supported by safe-haven demand amid geopolitical and economic uncertainty. Spot gold rose 0.4 percent to $4,155.99 per ounce, while U.S. gold futures for December delivery gained 0.3 percent to $4,174.30 per ounce.
Gold has soared nearly 55 percent so far this year, reaching a record $4,179.48 on Tuesday. Analysts attribute the rally to a combination of global uncertainties, expectations of Fed rate cuts, strong central bank buying, a gradual shift away from the U.S. dollar, and sustained inflows into gold exchange-traded funds (ETFs).
Federal Reserve Chair Jerome Powell said on Tuesday that future policy decisions would be taken “meeting by meeting,” balancing inflation concerns with signs of a weakening labor market. Investors are now pricing in a 25-basis-point rate cut at the upcoming Fed meeting, with another likely in December.
Adding to gold’s momentum, trade tensions between Washington and Beijing have flared again. U.S. President Donald Trump said his administration is considering cutting some trade ties with China, including in cooking oil, after both nations imposed new port fees on each other this week.
Experts said the combination of geopolitical uncertainty, policy easing expectations, and ongoing market anxiety — including the U.S. government shutdown — has driven investors toward the safety of gold, pushing prices to new all-time highs. (Source: IANS)
