MCX gold futures advance to fresh record high at ₹1.32 lakh/10 grams; Silver at new peak

Extending the gains for the sixth consecutive session, the February 2026 contract for the safe-haven futures also rose sharply by ₹977, or 0.76%, to touch an all-time high of ₹1,34,024 per 10 grams.

"Gold prices remain elevated at record levels, driven by expectations of more interest rate cuts from the US Federal Reserve (Fed) and ongoing tensions between Washington and Beijing," Darshan Desai, Chief Executive Officer of Aspect Bullion & Refinery, told PTI.

He added that the futures market now anticipates a larger rate cut from the Fed, possibly later this month or in December, which could give gold prices another boost.

"Gold is also likely to remain a safe-haven asset, supported by concerns over rising and potentially unsustainable debt levels, a weakening US dollar, and continued buying by central banks," Desai said.

On Thursday, domestic gold prices retreated from their record levels, declining by ₹200 to ₹1,31,600 per 10 grams in New Delhi amid profit booking by traders, according to the All India Sarafa Association.

In the international markets, spot gold rose nearly 1% to hit an all-time high of $4,246.08 per ounce on October 16, extending its recent rally as investors sought refuge in safe-haven assets amid fiscal concerns in the US and rising global tensions.

Tracking yellow metal, silver prices also surged to new peaks on the MCX. The white metal for December delivery appreciated by ₹2,752, or 1.64%, to hit a record ₹1,70,415 per kilogram on Friday.

On the MCX, the white-metal futures for the March 2026 expiry advanced as much as ₹3,274 or 1.94% to a fresh all-time high of ₹1,72,350 per kilogram.

Silver prices have surged sharply amid a historic short squeeze and tightening liquidity in the London market, which forced traders to rush for physical supply worldwide.

Furthermore, silver has seen a rising demand in various industries and the green energy sector, with growing applications in electronics, electric vehicles, and solar panels. This growing demand comes amid supply constraints, according to analysts.