Investors flocked to the safety of precious metals on Tuesday, driving gold and silver prices to unprecedented lifetime highs. This powerful rally, extending gains for a second consecutive session, was fueled by a combination of escalating geopolitical tensions and growing market expectations of interest rate cuts by the US Federal Reserve in the coming year.
Domestic and Global Markets Scale New Peaks
The buying momentum was evident across both Indian and international exchanges. On the Multi Commodity Exchange (MCX), gold futures for February delivery skyrocketed by Rs 1,637, or 1.2%, to reach a historic peak of Rs 1,38,381 per 10 grams. This marked a significant milestone for domestic traders and investors.
The rally mirrored global trends, where the surge was equally pronounced. On the Comex exchange, gold futures for February delivery advanced sharply by $61.4, or 1.37%, setting a fresh all-time record of $4,530.8 per ounce. This synchronized jump underscores a broad-based reassessment of risk among global market participants, who are increasingly seeking refuge in traditional safe-haven assets like gold amid a cloudy economic and political outlook.
Today's Gold Rates Across Major Indian Cities
Here is a snapshot of how the record-breaking trends translated into retail prices for 22K and 24K gold in key Indian markets on Tuesday:
- Delhi: 22K gold at Rs 12,715/gram; 24K gold at Rs 13,870/gram.
- Mumbai: 22K gold at Rs 12,700/gram; 24K gold at Rs 13,855/gram.
- Bengaluru: 22K gold at Rs 12,700/gram; 24K gold at Rs 13,855/gram.
- Chennai: 22K gold at Rs 12,770/gram; 24K gold at Rs 13,931/gram.
- Kolkata: 22K gold at Rs 12,700/gram; 24K gold at Rs 13,855/gram.
- Hyderabad: 22K gold at Rs 12,700/gram; 24K gold at Rs 13,855/gram.
- Ahmedabad: 22K gold at Rs 12,705/gram; 24K gold at Rs 13,860/gram.
- Jaipur: 22K gold at Rs 12,715/gram; 24K gold at Rs 13,870/gram.
- Bhubaneswar: 22K gold at Rs 12,700/gram; 24K gold at Rs 13,855/gram.
- Kanpur: 22K gold at Rs 12,715/gram; 24K gold at Rs 13,870/gram.
What's Driving the Precious Metals Boom?
The surge to record levels is attributed to two primary factors acting in tandem. First, heightened geopolitical uncertainty around the world is prompting investors to move capital into assets perceived as stable stores of value. Second, increasing bets that the US Federal Reserve will cut interest rates next year are putting pressure on the US dollar and reducing the opportunity cost of holding non-yielding assets like gold. This potent mix has created a perfect storm for precious metals, attracting sustained investment flow.
Analysts suggest that as long as these macro conditions persist, the underlying support for gold and silver prices is likely to remain strong. The market will be closely watching central bank signals and global developments for the next directional cue.
