Gold prices surged by ₹1,244 on Wednesday, reaching a new all-time high of ₹1,27,500 per 10 grams in domestic futures trade, while the yellow metal surpassed the $4,200 per ounce threshold in global markets. The rally was driven by increased demand for safe-haven assets amid renewed geopolitical and economic uncertainties.
Traders turned to gold as a secure investment option in light of growing concerns surrounding global trade and geopolitical tensions. Support for the upward trend was bolstered by comments from Federal Reserve Chair Jerome Powell, who indicated potential monetary easing later this year.
On the Multi Commodity Exchange (MCX), gold futures for December delivery extended their rally for the fourth consecutive session, climbing 0.98 percent to hit ₹1,27,500 per 10 grams. Meanwhile, the February 2026 contract for the metal rose by ₹943, or 0.73 percent, to a new peak of ₹1,28,435 per 10 grams.
Silver futures for December delivery also saw gains, increasing by ₹1,256, or 0.78 percent, to ₹1,60,760 per kilogram. The metal had reached an all-time high of ₹1,62,700 per kilogram on Tuesday. Additionally, the March 2026 silver futures contract rose by ₹940, or 0.59 percent, to ₹1,60,522 per kilogram, following its previous session’s peak of ₹1,63,549 per kilogram.
In international markets, Comex gold futures for December delivery increased by nearly 2 percent, reaching $4,211 per ounce. Jigar Trivedi, Senior Research Analyst at Reliance Securities, noted, “Gold prices climbed to $4,200 per ounce and extended their bullish run to notch a fresh record as investors sought the metal’s safety and ramped up bets of additional US monetary easing.”
The escalation in US-China trade tensions has heightened risk aversion, further enhancing gold’s appeal. U.S. President Donald Trump accused China of “economically hostile” actions by stopping soybean imports and hinted at potential retaliatory measures, including a cooking oil embargo. This exchange came after Beijing threatened further retaliation following sanctions imposed on five US units of South Korean shipbuilder Hanwha Ocean, increasing trade tensions between the two largest global economies.
Comex silver futures for December also rose by 1.29 percent, trading at $51.27 per ounce, after reaching a lifetime high of $52.49 per ounce on Tuesday. Commodity market experts attribute the ongoing bullion surge to rising expectations of US rate cuts, as the Federal Reserve faces indications of a cooling economy.
At the National Association for Business Economics (NABE) conference, Powell cautioned that the sharp slowdown in hiring presents significant risks to the US economy, reinforcing projections for two more rate cuts this year. Meanwhile, the International Monetary Fund (IMF) raised its global growth forecast for 2025 in its ‘World Economic Outlook’ report, citing improved tariff and financial conditions, but warned that ongoing trade frictions, especially between the US and China, could impact global economic stability.
Published on October 15, 2025
