The gold prices surged over 0.5 per cent to hit record highs on Wednesday, pushing above $4,500 an ounce due to escalating US‑Venezuela tensions and expectations for more US rate cuts next year.MCX gold February futures rose 0.44 per cent to Rs 1,38,485 per 10 grams, while MCX silver surged 1.79 per cent to a record high of Rs 2,23,593 per kilogram (as of 10.05 am).
The dollar index had declined 0.20 per cent during the session, making gold cheaper in overseas currencies.”Spot gold surged past the psychological $4,500 per ounce milestone, propelled by safe-haven demand and rate cut expectations. Silver touched a fresh all-time high and surged beyond $72,” said Devarsh Vakil, Head of Prime Research at HDFC Securities.
Silver continued its sharp rally, gaining 24 per cent in December and rising 135 per cent year-on-year, reflecting tight supply-demand fundamentals and strong safe-haven inflows, analysts said.Gold prices also posted robust gains. Domestic spot gold prices have surged more than 76 per cent year-to-date, while international gold prices are up over 70 per cent in 2025, putting the metal on track for its best annual performance since 1979.Among other precious metals, platinum traded above $2,300 an ounce for the first time in several decades, while palladium also recorded gains.Geopolitical developments added to market uncertainty. The US Coast Guard this month seized a sanctions-hit supertanker carrying Venezuelan oil and attempted to intercept two additional Venezuela-linked vessels over the weekend, heightening global tensions.Further supporting safe-haven demand, the killing of a Russian army general in a bomb attack on Monday increased geopolitical risk, lending support to gold and silver prices.On the technical front, analysts said gold has support in the Rs 1,35,550–Rs 1,34,710 range, while silver is supported at Rs 2,11,150–Rs 2,10,280.Market participants attributed the rally in gold and silver this year to aggressive central bank buying, expectations of US Federal Reserve rate cuts, concerns over the impact of US tariffs, ongoing geopolitical tensions, and strong inflows into gold and silver exchange-traded funds (ETFs).
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