Gold and silver hit record highs amid geopolitical tensions and rate cut hopes

Gold and silver prices surged to record levels on Wednesday, driven by escalating tensions between the United States and Venezuela and expectations of further US interest rate cuts next year.

MCX gold February futures rose 0.44 per cent to Rs 1,38,485 per 10 grams, while MCX silver jumped 1.79 per cent to a record Rs 2,23,593 per kilogram as of 10.05 am. Internationally, spot gold surpassed the $4,500-per-ounce mark, while silver breached $72, reflecting robust safe-haven demand, analysts said.

Devarsh Vakil, Head of Prime Research at HDFC Securities, said, “Spot gold surged past the psychological $4,500 milestone, propelled by safe-haven demand and expectations of rate cuts. Silver touched a fresh all-time high.”

Silver has surged 24 per cent in December alone and 135 per cent year-on-year, reflecting tight supply-demand dynamics and strong safe-haven inflows, Vakil added. Domestic gold prices have risen over 76 per cent year-to-date, with international prices up more than 70 per cent in 2025, on track for their strongest annual performance since 1979.

Platinum also traded above $2,300 per ounce for the first time in decades, while palladium recorded gains.

Geopolitical developments contributing to the rally include the US Coast Guard seizing a supertanker under sanctions and attempting to intercept two more Venezuela-related vessels over the weekend. Additionally, the killing of a Russian army general in a bomb attack on Monday added to global risk concerns, boosting demand for precious metals.

Analysts cited support levels for gold at Rs 1,35,550–1,34,710 per 10 grams and for silver at Rs 2,11,150–2,10,280 per kilogram.

“The surge in gold and silver is driven by aggressive central bank buying, Fed rate cut expectations, concerns over US tariffs, geopolitical tensions, and strong inflows into ETFs,” Vakil noted.

With IANS inputs