Gold and silver prices surged to record highs on Wednesday, driven by escalating tensions between the United States and Venezuela, along with expectations of further interest rate cuts by the US Federal Reserve next year.
Gold prices rose over 0.5 per cent to cross the $4,500-an-ounce mark in international markets. On the domestic front, MCX gold February futures gained 0.44 per cent to trade at Rs 1,38,485 per 10 grams, while MCX silver jumped 1.79 per cent to a record high of Rs 2,23,593 per kilogram as of 10.05 a.m.
The dollar index slipped 0.20 per cent during the session, making precious metals cheaper for holders of other currencies and supporting prices.
“Spot gold surged past the psychological $4,500-per-ounce level, driven by safe-haven demand and expectations of rate cuts. Silver also touched a fresh all-time high, moving beyond $72,” said Devarsh Vakil, Head of Prime Research at HDFC Securities.
Silver has gained 24 per cent in December and surged 135 per cent on a year-on-year basis, reflecting tight supply-demand dynamics and strong safe-haven demand, he added.
Domestic spot gold prices have climbed more than 76 per cent so far this year, while international gold prices have risen over 70 per cent in 2025, marking their strongest annual performance since 1979.
Platinum also crossed $2,300 an ounce for the first time in several decades, while palladium recorded gains during the session.
Market sentiment was further impacted after the US Coast Guard seized a sanctioned supertanker carrying Venezuelan oil earlier this month and attempted to intercept two more Venezuela-linked vessels over the weekend, heightening geopolitical tensions.
Additionally, the killing of a Russian army general in a bomb attack on Monday added to geopolitical uncertainty, boosting demand for safe-haven assets such as gold and silver.
According to analysts, gold has support in the Rs 1,35,550–1,34,710 range, while silver is supported at Rs 2,11,150–2,10,280.
Aggressive central bank buying, expectations of US rate cuts, concerns over potential US tariffs, geopolitical risks, and strong inflows into gold and silver exchange-traded funds have been key drivers behind the rally in precious metals this year.
–IANS
