Gold prices crossed the ₹1 lakh mark per 10 grams on December 22, marking a historic moment for the Indian bullion market. Strong buying interest, driven by expectations of interest rate cuts in the US next year and rising geopolitical tensions, pushed both domestic and global prices to fresh record highs.
On the Multi Commodity Exchange (MCX), the February gold futures contract surged to a lifetime high of ₹1,36,458 per 10 grams, firmly taking the spot-equivalent price beyond the ₹1 lakh level in the physical market. The contract had opened at ₹1,34,899 and remained strong through the session, gaining more than ₹2,200 in a single day.
By 8 PM on Tuesday, MCX gold was trading at ₹1,36,452 per 10 grams, up 1.65%. With this rally, gold’s year-to-date gain has climbed to 77.5%, putting it on course for its strongest annual performance since the inflation shock of 1979.
The latest leg of the rally followed fresh US economic data that reinforced expectations of rate cuts by the US Federal Reserve in 2026. Lower interest rates tend to support gold prices, as the metal does not offer interest returns and becomes more attractive when borrowing costs fall.
Traders are currently factoring in two rate cuts next year, even as delayed signals from inflation and employment data continue to cloud the outlook for the US economy. Comments from US President Donald Trump, who has repeatedly called for easier monetary policy, have also remained in focus.
In international markets, spot gold climbed to $4,346 an ounce, rising 1.35% during the session and coming within touching distance of its record high of $4,381. Prices later moved even higher, briefly touching $4,428 an ounce, setting a fresh global peak.
The move in global prices has had a direct impact on Indian rates, with a weaker rupee and sustained import demand amplifying the rise in domestic markets.
Silver prices moved even faster than gold. On MCX, silver jumped ₹6,144 to hit a fresh record high of ₹2,14,583 per kg, crossing the ₹2.14 lakh mark for the first time.
The metal has now gained 145% so far this year, nearly double gold’s rise, as traders continued to pile into precious metals amid uncertainty around growth, inflation and global politics.
Apart from rate-cut expectations, geopolitical tensions also lent support to bullion prices. The US stepped up pressure on Venezuela by tightening an oil blockade, while Ukraine carried out its first reported attack on a Russian shadow-fleet oil tanker in the Mediterranean Sea.
Such developments tend to push investors towards safe-haven assets like gold and silver, especially when economic signals remain mixed.
Investor attention is now shifting to the second estimate of US GDP for the third quarter, scheduled for release on December 23. The data is expected to offer clearer clues on the strength of the US economy and the likely direction of interest rates.
Global brokerage Goldman Sachs has said prices could continue rising into 2026, outlining a base-case scenario of $4,900 an ounce, while flagging potential upside risks depending on how economic and geopolitical conditions evolve.
