Gold rates today: MCX gold jumps over ₹1700 to record ₹1,38,496 per 10g on rising geopolitical tensions

Both gold and silver touched fresh historic highs in Tuesday’s session, December 23, as renewed geopolitical tensions boosted appetite for precious metals, while expectations of further US Federal Reserve rate cuts next year, following signs of easing inflation and a cooling labor market, also supported the record-breaking rally.

After a 2% rally, the February gold futures contract on MCX opened higher at ₹1,38,297 per 10 grams, compared to the previous close of ₹1,36,744, and maintained momentum to touch a fresh record high of ₹1,38,496 (up ₹1,752 per 10 grams).

Silver prices mirrored the same strength, with March silver futures jumping ₹6,577 to a fresh record high of ₹2,19,449 per kilo.

Meanwhile, spot silver rose as much as 1.8% to trade above $70 an ounce for the first time, while gold hovered near $4,500 an ounce.

Traders are betting that the Federal Reserve will follow three straight interest-rate cuts with further reductions next year, providing a supportive backdrop for non-yielding assets.

The rate cut expectations are also driving demand for the US dollar lower, which is trading near its lowest level since October, making dollar-priced gold less expensive for holders of other currencies.

Gold has bounced back quickly after retreating from its previous peak of $4,381 in October, when the rally was seen as overheated, and is now positioned to carry these gains into next year.

Goldman Sachs Group Inc. is among several banks predicting that prices will continue rising in 2026, issuing a base-case scenario of $4,900 an ounce with risks to the upside.

Escalating US-Venezuela tensions are keeping the precious metals hot, even as both silver and gold are on track to register their biggest yearly gains since 1979. The US, last week, has intensified an oil blockade against Venezuela, stepping up pressure on the government of President Nicolás Maduro.

Gold surges 80%, silver jumps 150% in 2025

Gold has surged 80% this year, supported by elevated central bank purchases and inflows into exchange-traded funds, with total holdings in gold-backed ETFs rising every month this year except May, according to World Gold Council data.

US President Donald Trump’s aggressive moves to reshape global trade, as well as his threats to the Fed’s independence, added fuel to the bull run earlier this year. Investors have also been spurred in part by the so-called debasement trade, a retreat from sovereign bonds and the currencies they are denominated in over fears their value will erode over time due to ballooning debt levels.

Silver’s rally of around 150% this year has been even more spectacular than gold’s, with its most recent advance buoyed by speculative inflows and lingering supply dislocations across major trading hubs following a historic short squeeze in October.

(With inputs from Bloomberg)

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