Story by Harshit Uttam I Updated : 24 December 2025
MCX gold prices surged ₹1,700 today, reaching a record ₹1,38,496 per 10 grams amid geopolitical tensions.
On Tuesday, December 23, both gold and silver reached unprecedented levels, with renewed geopolitical tensions spurring investor appetite for safe-haven assets. Anticipation of additional US Federal Reserve rate cuts in 2026, amid signs of moderating inflation and a softer labor market, further propelled the record-breaking rally.
After a 2% surge, February gold futures on MCX began trading higher at ₹1,38,297 per 10 grams versus ₹1,36,744 previously, sustaining momentum to reach a fresh peak of ₹1,38,496, marking a gain of ₹1,752 per 10 grams.
Silver prices mirrored the same strength, with March silver futures jumping ₹6,577 to a fresh record high of ₹2,19,449 per kilo.
Silver prices climbed as much as 1.8% to break above $70 an ounce for the first time, with gold hovering around $4,500.
Investor sentiment suggests confidence that the Fed will continue easing policy after three consecutive rate cuts, creating a favorable environment for non-yielding assets.
Anticipation of further rate cuts is pressuring the US dollar, now trading close to its lowest level since October, which in turn makes gold priced in dollars more affordable for holders of other currencies.
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After pulling back from its earlier high of $4,381 in October, when the rally appeared overheated, gold has rebounded sharply and looks set to sustain momentum into next year.
Several banks, including Goldman Sachs, expect gold’s rally to extend into 2026, setting a base-case target of $4,900 per ounce while highlighting risks skewed to the upside.
Precious metals remain buoyant amid escalating US-Venezuela tensions, with both gold and silver on track for their strongest yearly performance since 1979. The US last week expanded its oil blockade against Venezuela, heightening pressure on President Nicolás Maduro.
In 2025, gold prices soared 80%, while silver skyrocketed 150%.
This year, gold has surged 80%, supported by robust central bank purchases and consistent inflows into exchange-traded funds. World Gold Council data shows ETF holdings increased every month except May.
The bull run earlier this year was bolstered by President Donald Trump’s assertive efforts to reshape global trade and his criticism of the Federal Reserve’s independence. Investor sentiment was also lifted by the “debasement trade,” reflecting a move away from sovereign bonds and currencies on worries that mounting debt will diminish their long-term value.
This year’s silver rally—up about 150%—has proven even more dramatic than gold’s, supported by speculative inflows and persistent supply dislocations across key trading centers following the historic short squeeze in October.
Disclaimer: Always consult certified financial advisors before making investment decisions.
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