New Delhi: Gold and silver prices surged to unprecedented all-time highs in domestic and international markets on Tuesday, as investors flocked to safe-haven assets amid escalating trade tensions between the US and China and growing expectations of interest rate cuts by the US Federal Reserve.
On the Multi Commodity Exchange (MCX), December gold futures skyrocketed by ₹2,301 to hit a new peak of ₹1,26,930 per 10 grams. Silver followed suit, with December futures soaring by ₹8,055, or 5.2 percent, to a record ₹1,62,700 per kilogram.
The rally is fueled by a perfect storm of economic and geopolitical uncertainty. “Gold prices climbed to a record high as renewed US-China trade tensions exacerbated broader uncertainty, bolstering safe-haven demand, while the prospects of interest rate cuts by the Federal Reserve lent support,” explained Manav Modi, an analyst at Motilal Oswal Financial Services.
The surge was mirrored in international markets, where Comex gold for December delivery touched an all-time high of $4,190.67 per ounce, marking a 60 percent increase year-to-date. Silver futures also hit a lifetime high of $52.49 per ounce, driven by what analysts call an “acute supply shortage in the global market.”
The latest jitters were sparked by China’s plans to expand export controls on rare-earth minerals, which prompted US President Donald Trump to threaten 100 percent tariffs on Chinese imports. The ongoing 13-day US federal government shutdown is also adding to economic concerns.
Investors are now keenly awaiting remarks from Federal Reserve Chair Jerome Powell and key US economic data later this week, though officials have warned that data releases may be postponed if the government shutdown persists.
