Gold prices on the Multi-Commodity Exchange (MCX) on Wednesday crossed Rs 1.27 lakh per 10 grams —an all-time high . Escalating US-China trade tensions and expectations of an interest rate cut by the US Federal Reserve fueled the rally.
Gold futures on MCX rose 0.52% to ₹1,26,915 per 10 grams, before hitting a new high of ₹1,27,500 . Silver also rose 0.18% to ₹1,59,800 per kg and touched ₹1,61,418during the day .
Gold held near record levels on global safe-haven demand . In early trade, gold rose 0.46% to ₹126,835 per 10 grams, while silver rose 0.52% to ₹160,333 per kg.
Gold has risen 55% so far this year and hit an all-time high of $4,179.48 an ounce on Tuesday . Spot gold rose 0.4% to $4,155.99 , while US gold futures rose 0.3% to $4,174.30 an ounce.
According to analysts, this rise is due to global uncertainty, Fed policy easing, strong buying by central banks, dollar weakness and increasing investment in gold ETFs .
Fed Chairman Jerome Powell indicated that interest rate decisions will now be made on a meeting-by-meeting basis . Markets expect a 25-basis-point cut in November and another in December.
Meanwhile, rising US-China trade tensions are also pushing gold higher. US President Donald Trump said Washington is considering ending some trade ties with China.
Experts say geopolitical tensions, policy uncertainty and investor caution are pushing gold to new record levels.