Gold and silver prices on Tuesday scaled fresh record highs in the domestic futures trade, mirroring lifetime gains in the international markets as renewed US-China trade tensions and prospects of rate cuts by the US Federal Reserve bolstered safe-haven demand.
On the Multi Commodity Exchange (MCX), gold futures for December delivery climbed Rs 2,301, or 1.84 per cent, to hit a new peak of Rs 1,26,930 per 10 grams. The February 2026 contract for the yellow metal also surged Rs 2,450, or 1.94 per cent, to touch a record of Rs 1,28,220 per 10 grams.
"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, with silver also reaching an all-time peak," Manav Modi, Analyst – Precious Metal, Motilal Oswal Financial Services, said.
In tandem with gold, silver prices soared sharply on the MCX. The white metal futures for December delivery bounced by Rs 8,055, or 5.2 per cent, to a record of Rs 1,62,700 per kilogram.
The March 2026 contract for silver futures zoomed by Rs 9,257, or 6 per cent, to hit a new peak of Rs 1,63,549 per kg on the commodities bourse.
In the international market, both gold and silver futures touched record highs on Tuesday. Comex gold for December delivery rose more than 1 per cent to reach an all-time high of USD 4,190.67 per ounce.
"Gold prices have surged 60 per cent year-to-date, surpassing the crucial USD 4,100 milestone for the first time on Monday, bolstered by geopolitical and economic uncertainties, rate-cut expectations, strong central bank buying, and strong exchange traded funds (ETF) inflows," Modi said.
Silver futures for December delivery advanced by 4 per cent to a lifetime high of USD 52.49 per ounce.
"Silver as well continues to surge higher, breaching the USD 52 per ounce mark, an all-time high on Comex, amidst, acute supply shortage in the global market, disrupting the premiums and parities and supporting the prices," he added.
The gains in precious metals came as geopolitical risks deepened after China announced plans to expand rare-earth export controls last week, prompting US President Donald Trump to threaten 100 per cent tariffs on Chinese imports and impose export restrictions on critical US-made software from November 1.
Meanwhile, US Treasury Secretary Scott Bessent said Trump remains on track to meet Chinese President Xi Jinping in South Korea later this month.
Adding to the uncertainty, the ongoing US federal government shutdown, now in its 13th day, is beginning to weigh on the country's economy, Modi said.
Jigar Trivedi, Senior Research Analyst at Reliance Securities, said, "Investors are now awaiting remarks from Federal Reserve Chair Jerome Powell at the National Association for Business Economics (NABE) annual meeting later in the day, hoping to gain insights on the US central bank's rate-cut path." Manav Modi of Motilal Oswal Financial Services said, "There are several data points such as Consumer Price Index (CPI) inflation, retail sales and others set to release later this week. However, if the US shutdown persists, these data, along with jobs data, will be postponed."
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