MCX gold soars to record ₹1.58 lakh/10 grams; crosses $4,800 mark in global markets amid geopolitical uncertainty

Gold at record high: Gold futures for February delivery soared as much as ₹7,774 or 5.16% to scale an all-time high of ₹1,58,339 per 10 grams, for the third consecutive session, on the Multi-Commodity Exchange (MCX) on Wednesday, January 21.

In the international markets, the yellow metal prices breached the $4,800 per ounce level amid sustained demand for safe-haven assets.

On Tuesday, the yellow metal (Feb expiry) extended its record-breaking run, breaching the ₹1.5 lakh per 10-gram mark in futures trade. Over the last three sessions, gold prices climbed by ₹15,822, or 11.10%, from ₹1,42,517 per 10 grams on January 16.

Similarly, gold futures for expiry in April rallied as much as ₹8,869 or 5.63% to a lifetime high of ₹1,66,425 per 10 grams.

Silver (for delivery in March), too, extended its upward march for the third consecutive day and hit yet another record on the MCX. The white metal futures for the March contract soared by ₹11,849, or 3.66%, to ₹3,35,521 per kilogram.

In the international market, gold futures on the Comex breached the $4,800-per-ounce level for the first time. The yellow metal for February delivery appreciated by $113.4, or 2.4%, to $4,880.9 per ounce.

Comex silver futures for the March contract were trading 0.17% higher at $94.79 per ounce, after hitting a record of $95.53 per ounce in the previous session.

What is driving the rally?

Rising geopolitical uncertainties, along with a fear of a renewed trade war has dampened investor appetite for riskier assets such as equities and led to an increase in demand for safe-haven assets. The rupee hitting a new record low also added to the rally in the precious metals.

US President Donald Trump threatened to hit eight European countries with new tariffs as tensions escalated over his attempts to assert American control over Greenland.

Furthermore, the US Supreme Court on Tuesday dashed hopes for a swift rollback of President Donald Trump’s sweeping tariffs as it decided to defer its verdict on the legality of the reciprocal duties, adding to the uncertainty.

Meanwhile, the rupee depreciated 61 paise to an all-time low of 91.58 against the American currency in intraday trade on Wednesday, weighed down by persistent foreign fund outflows.

The depreciation of the Indian Rupee against the US dollar makes gold imports costlier, pushing up local prices.