Gold Rates Hit Record High as MCX Gold Jumps ₹1,700 on Global Tensions

Gold prices surged to fresh all-time highs on Tuesday, December 23, as global investors rushed toward safe-haven assets amid escalating geopolitical tensions and growing expectations of interest-rate cuts by the US Federal Reserve next year. Both gold and silver extended a rally that has already defined 2025 as one of the strongest years for precious metals in decades.

On the Multi Commodity Exchange (MCX), February gold futures jumped more than ₹1,700 per 10 grams to touch a record ₹1,38,496, after opening higher at ₹1,38,297. The sharp rise followed a previous close of ₹1,36,744, reflecting a near 2% single-day gain driven by heightened risk aversion in global markets.

Silver mirrored the bullish momentum. March silver futures surged ₹6,577 to hit a fresh peak of ₹2,19,449 per kilogram, while spot silver prices climbed nearly 1.8% to trade above $70 an ounce for the first time. Gold, meanwhile, hovered close to $4,500 an ounce in international markets, reinforcing the strength of the ongoing rally.

Market participants attribute the surge to a convergence of macroeconomic and geopolitical factors. Expectations that the Federal Reserve may follow three consecutive rate cuts with further easing next year have reduced the appeal of the US dollar, which is trading near its lowest levels since October. A weaker dollar typically boosts demand for dollar-denominated commodities, making gold more attractive to investors holding other currencies.

Geopolitical risks have further amplified the move. Rising tensions between the United States and Venezuela, including an intensified oil blockade announced last week, have added to global uncertainty. Historically, such flashpoints have driven capital into assets perceived as stores of value, and the current environment is proving no different.

Gold’s rapid rebound has also surprised some observers. After retreating from its earlier peak of $4,381 in October amid concerns that the rally had overheated, prices have regained strength far quicker than expected. Several global investment banks remain optimistic. Goldman Sachs, for instance, has issued a base-case forecast of $4,900 an ounce for gold in 2026, with risks skewed firmly to the upside.

The broader trend underlines a structural shift in investor behaviour. Central bank purchases remain elevated, exchange-traded fund inflows have been largely consistent throughout the year, and concerns over sovereign debt and currency debasement continue to support precious metals. According to World Gold Council data, holdings in gold-backed ETFs have risen in every month of 2025 except May.

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With gold up nearly 80% and silver soaring around 150% year-to-date, both metals are now on course to post their strongest annual gains since 1979. Analysts caution that short-term volatility remains possible, but the underlying drivers monetary easing, geopolitical risk and long-term inflation concerns suggest the broader uptrend may persist into 2026.