Gold prices continued their record-breaking run on Monday, inching closer to Rs 1.3 lakh per 10 grams as investors prepare for the Dhanteras festival. Experts predict that the precious metal could reach Rs 1.5 lakh by early 2026, fueled by global economic uncertainties, robust central bank buying, and expectations of interest rate reductions that are sustaining investor interest.
“Strong central bank and ETF buying, even at record prices, along with declining trust in fiat currencies amid upcoming rate cuts, will keep gold prices elevated,” analysts said.
Local Market Trends and Drivers
On the Multi Commodity Exchange (MCX), December gold futures touched Rs 1,22,284 per 10 grams this week. Analysts cite geopolitical tensions, rising inflation concerns, and the expectation of US Federal Reserve rate cuts as key drivers. A weaker US dollar has also made gold more affordable for international investors, enhancing demand. Investor sentiment is further boosted by consistent buying from exchange-traded funds (ETFs) and central banks around the world, which have continued to accumulate gold despite high prices.
During early Monday trade, MCX Gold December futures surged 1.62 per cent to Rs 1,23,313 per 10 grams, while MCX Silver December futures gained 3.44 per cent to Rs 1,51,577 per kg. Globally, spot gold reached a record high above $4,060 per ounce on Friday, marking its eighth consecutive weekly gain, and silver rose 1.1 per cent to nearly $51 per ounce. Market analysts attribute this continued momentum to rising geopolitical risks, particularly tensions between the US and China, which have sparked safe-haven demand.
Gold Rates in Chennai Today
In Chennai, gold prices stand at Rs 11,525 per gram for 22-karat and Rs 12,573 per gram for 24-karat (999) gold. Experts advise buyers to monitor developments in US-China trade tensions, which continue to influence global precious metal prices. China recently urged the US to resume negotiations, cautioning that any new tariffs would be met with retaliation, while US President Donald Trump has softened previous tariff threats. With Dhanteras around the corner, consumer demand for jewellery is expected to rise, further supporting local prices and trading volumes.al safe-haven demand.
