Bullion futures extend record rally

New Delhi: Gold and silver prices continued their record-breaking run as investors piled into safe-haven assets amid rising geopolitical tensions and growing expectations of interest rate cuts next year by the US Federal Reserve.

Both precious metals extended their winning streaks, setting fresh records in domestic and international markets.

On the Multi Commodity Exchange (MCX), gold futures for February delivery climbed by Rs 1,637, or 1.2 per cent, to hit a new all-time high of Rs 1,38,381 per 10 grams, marking the gains for the second straight session.

Silver futures, too, maintained their upward momentum for the third consecutive day. The white metal for March 2026 contract appreciated by Rs 3,724, or 1.75 per cent, to touch a record high of Rs 2,16,596 per kilogram. In the international markets, Comex gold futures for February delivery increased by $61.4, or 1.37 per cent, to scale a fresh peak of $4,530.8 per ounce.

“Gold prices climbed to a fresh record above $4,480 per ounce, marking the 50th record-breaking session this year, driven by expectations of looser US monetary policy and mounting geopolitical tensions,” Jigar Trivedi, Senior Research Analyst at Reliance Securities, said.

Market participants are currently pricing in two quarter-point rate cuts by the Federal Reserve next year, amid signs of easing inflation and a cooling labour market. In addition, silver futures breached the $70-mark for the first time, on the Comex, gaining by $1.59, or 2.32 per cent, to scale a fresh record of $70.15 per ounce.

Trivedi added that investor’s focus is now turning to the second estimate of third-quarter GDP data, due later in the day, which could provide further insights into the health of the US economy and the likely path of Fed’s monetary policy outlook. Safe-haven demand for bullion has also been supported by rising tensions between the US and Venezuela, after Washington intensified its naval blockade of the region, seizing a second oil tanker on Saturday and pursuing a third.