Hyderabad: Rising geopolitical tensions in international markets pushed gold and silver prices to fresh record highs, driven by strong safe-haven demand on Tuesday.
Escalating tensions between the United States and Venezuela lifted investor anxiety. As a result, gold and silver prices rose by more than one per cent in a single trading session.
Gold silver prices surge to new records on MCX
On the Multi Commodity Exchange of India, February gold futures climbed 1.2 per cent to touch an all-time high of ₹1,38,381 per 10 grams. By 10.48 am, the contract traded 1.01 per cent higher.
Meanwhile, silver prices moved faster. MCX silver surged 1.7 per cent to hit a new record of ₹2,16,596 per kilogram. At the same time, silver continued to trade with gains of 1.30 per cent.
In global markets, a 0.20 per cent drop in the dollar index made gold cheaper for holders of other currencies. Consequently, demand for the yellow metal strengthened further.
Market sentiment also weakened after the US Coast Guard seized a supertanker carrying Venezuelan oil. Reports of attempts to block other vessels added to investor concern. In addition, the killing of a Russian army general in a bomb attack raised fresh security fears.
According to experts, expectations of interest rate cuts by the Federal Reserve, heavy gold purchases by central banks, and strong inflows into gold ETFs supported the rally.
So far this year, domestic gold prices have risen 76 per cent, while global gold prices climbed nearly 70 per cent. Silver prices recorded even sharper gains, rising around 140 per cent in both domestic and international markets.