Gold hit record Rs 1.27 lakh per 10 grams

Gold prices on Wednesday surged by Rs 1,244, reaching a new all-time high of Rs 1,27,500 per 10 grams in domestic futures trade, while the yellow metal breached the USD 4,200 per ounce level in global markets, fuelled by strong safe-haven demand.

Analysts said traders rushed to safe-haven assets after renewed geopolitical and trade worries clouded the global economic outlook.

The sentiment was further buoyed by remarks from US Federal Reserve Chair Jerome Powell, who hinted at possible monetary easing later this year.

On the Multi Commodity Exchange (MCX), gold futures for December delivery rose by Rs 1,244, or 0.98 per cent, to hit a record of Rs 1,27,500 per 10 grams.

Similarly, the February 2026 contract advanced by Rs 943, or 0.73 per cent, to a new peak of Rs 1,28,435 per 10 grams.

Silver futures for December delivery increased by Rs 1,256, or 0.78 per cent, to Rs 1,60,760 per kilogram, while the March 2026 contract increased by Rs 940, or 0.59 per cent, to Rs 1,60,522 per kg. The white metal had touched an all-time high of Rs 1,62,700 per kg on Tuesday.

In the global market, Comex gold futures for December delivery surged nearly 2 per cent to hit a record USD 4,211 per ounce on Wednesday.

"Gold prices climbed to USD 4,200 per ounce and extended their bullish run as investors sought the metal's safety and ramped up bets of additional US monetary easing," Jigar Trivedi, Senior Research Analyst at Reliance Securities, said.

The latest escalation in US-China trade tensions also boosted gold's appeal. US President Donald Trump accused China of 'economically hostile' behaviour after Beijing halting soybean imports and warned of possible retaliatory measures, including a cooking oil embargo.

Beijing had earlier imposed sanctions on five US units of South Korean shipbuilder Hanwha Ocean, heightening trade tensions between the world's two largest economies.

Comex silver futures for December delivery also gained 1.29 per cent to trade at USD 51.27 per ounce. The white metal had hit a lifetime high of USD 52.49 per ounce on Tuesday.

Market experts said the bullion rally has been fuelled by growing bets on US rate cuts as the Federal Reserve faces signs of a cooling economy.

Federal Reserve Chair Jerome Powell at the National Association for Business Economics (NABE) conference, cautioned that the sharp slowdown in hiring posed a significant risk to the US economy, reinforcing expectations of two more rate cuts this year.

Meanwhile, the International Monetary Fund (IMF) in its ‘World Economic Outlook' report raised its global growth forecast for 2025, citing improved tariff and financial conditions, but warned that ongoing trade frictions, between the US and China, could weigh on global economic stability.