SRINAGAR: Gold prices surged to an all-time high on Thursday, rising by Rs 1,185 to Rs 1,28,395 per 10 grams in domestic futures trade, as global prices breached the USD 4,250 per ounce mark. The rally was driven by growing expectations of interest rate cuts by the US Federal Reserve and persistent geopolitical uncertainties.
On the Multi Commodity Exchange (MCX), December gold futures climbed 0.93 per cent to touch Rs 1,28,395 per 10 grams, marking the fifth straight session of gains. The February 2026 contract also advanced Rs 977, or 0.76 per cent, to a new peak of Rs 1,29,380 per 10 grams.
“Gold prices remain elevated at record levels, driven by expectations of more rate cuts from the Fed and ongoing tensions between Washington and Beijing,” said Darshan Desai, Chief Executive Officer of Aspect Bullion and Refinery as per Deccan Chronicle. He added that the futures market now anticipates a larger rate cut later this month or in December, which could give further momentum to gold prices.
Analysts noted that gold continues to benefit from its safe-haven appeal amid concerns over rising global debt, a weakening US dollar, and sustained central bank purchases. The dollar index slipped 0.17 per cent to 98.63, further supporting bullion demand.
Tracking the yellow metal’s rally, silver prices also hit new highs. December silver futures on MCX jumped Rs 2,454, or 1.51 per cent, to Rs 1,64,660 per kilogram, while the March 2026 contract gained Rs 2,699, or 1.6 per cent, to 1,64,958 per kg.
In global trade, Comex gold futures touched a record USD 4,254.80 per ounce, while silver soared to USD 52.86 per ounce both lifetime highs.
“Gold’s surge above USD 4,250 reflects strong safe-haven demand and growing confidence in a dovish Fed stance,” said Jigar Trivedi, as per Mathrubhumi English who is Senior Research Analyst at Reliance Securities. He noted that comments by Fed Chair Jerome Powell indicating labour market weakness have led investors to price in a 25-basis-point rate cut this month, with another expected in December.
The rally also follows heightened US-China trade tensions after Washington criticised Beijing’s tighter restrictions on rare earth exports. Meanwhile, US Treasury Secretary Scott Bessent signalled possible curbs on China’s imports of Russian oil if coordinated with European allies a move analysts say could add to global market volatility.
