Bullion at record highs: Gold price tops Rs 1.39 lakh, silver hits Rs 2.32 lakh — what lies ahead?
Bullion hits new highs: It was a shiny session for precious metals on Friday, with gold and silver scaling fresh lifetime highs as investors rushed to the safety of bullion amid expectations of US interest rate cuts and rising global tensions.Silver led the rally, extending gains for a fifth straight session. On the Multi Commodity Exchange (MCX), silver futures for the March 2026 contract jumped Rs 8,951, or 4%, to a record all-time high of Rs 2,32,741 per kg. The white metal has surged Rs 29,176, or over 14%, since December 18. The sharp rise came as silver breached the $75-per-ounce mark in global markets for the first time.Gold also touched a historic milestone on the domestic bourse. Rising for the fourth consecutive session, MCX gold futures for February delivery climbed Rs 1,119, or 0.81%, to a fresh lifetime high of Rs 1,39,216 per 10 grams. Commodity markets had remained closed on Thursday due to the Christmas holiday.The rally gathered further momentum overseas. On the Comex, gold futures for February delivery rose $58.8, or 1.3%, to hit a new peak of $4,561.6 per ounce. Silver futures for March jumped $3.81, or 5.31%, to a record $75.49 per ounce, compared with $71.68 at the previous close.Explaining the surge, Jigar Trivedi, Senior Research Analyst at Reliance Securities, said gold prices climbed to around $4,500 per ounce “driven by safe-haven demand amid mounting geopolitical tensions and expectations of interest rate cuts by the US Federal Reserve,” PTI reported.“Investor focus remains on the ongoing US blockade of crude shipments from Venezuela, continued hostilities between Russia and Ukraine, and a recent military strike by Washington against ISIS in Nigeria,” Trivedi added.He also noted that markets are pricing in “two quarter-point rate cuts by the Federal Reserve next year as inflation cools and labour market conditions soften, even as Fed officials remain divided on the path ahead.”
What lies ahead?
According to Trivedi, “Gold prices have surged more than 70 per cent so far this year, marking its largest annual gain since 1979,” supported by strong central bank buying and sustained ETF inflows.Market experts believe the rally could extend into early 2026, backed by easing inflation, a weaker dollar and persistent geopolitical risks.“Gold is holding above the critical $4,500 level and could be eyeing $4,890, while silver looks steady above $70, eyeing $78, in the coming sessions,” said Manoj Kumar Jain of Prithvifinmart Commodity Research, ET reported.He added that risk aversion and a shift away from volatile assets continue to funnel money into precious metals, keeping bullish momentum intact.Meanwhile, the US Dollar Index remained subdued near two-month lows at 97.91. Trivedi said MCX gold February futures are likely to stay positive, with Rs 1,39,000 per 10 grams acting as the next key resistance.(Disclaimer: Recommendations and views on the asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
