Gold prices in Chennai soared on Monday, mirroring the sharp rally in both domestic and global markets. The yellow metal touched a fresh lifetime high as investors flocked to safe-haven assets amid heightened geopolitical risks and expectations of further rate cuts by the US Federal Reserve.
In the Chennai market, 22-karat gold was priced at Rs 11,060 per gram, while 24-karat (999 purity) gold stood at Rs 12,066 per gram, reflecting firm demand from local buyers. This surge came on a day when domestic futures also scaled new peaks, underscoring bullish sentiment across the bullion complex.
Gold Futures Scale New Highs on MCX
On the Multi Commodity Exchange (MCX), gold futures for December delivery jumped by Rs 1,962, or 1.66 per cent, to touch a record Rs 1,20,075 per 10 grams. The February 2026 contract continued the rally for a seventh consecutive session, climbing by Rs 2,017, or 1.69 per cent, to reach a fresh high of Rs 1,21,350 per 10 grams.
Last week, gold futures had already surged by Rs 3,222 per 10 grams, marking a 2.8 per cent rise, supported by softening US yields and growing bets on policy easing. Analysts pointed out that the ongoing US government shutdown, coupled with rising trade tensions, has reinforced gold’s safe-haven appeal.
“Physical demand for gold remained mixed, with softness in China offset by steady buying in other Asian markets, anticipating further price gains,” said Manav Modi, Analyst, Precious Metal Research at Motilal Oswal Financial Services. He added that SPDR Gold Shares, the world’s largest commodity-backed exchange-traded fund, reported higher holdings last week — a clear indication of renewed investor appetite.
Global Rally and Silver’s Record-Breaking Move
Globally, bullion prices hit new milestones. Comex gold futures for December delivery advanced nearly 2 per cent to reach $3,973.60 per ounce, while silver climbed more than 1 per cent to touch $48.58 per ounce, its highest level since April 2011.
Back home, silver futures followed suit. On the MCX, silver for December delivery soared by Rs 2,233, or 1.53 per cent, to hit a record Rs 1,47,977 per kg. The March 2026 contract also surged Rs 2,337, or 1.59 per cent, to Rs 1,49,605 per kg.
Experts attributed the surge to growing uncertainty over US fiscal policy. “Lawmakers once again failed to secure a funding deal, delaying key economic data, including September’s jobs report,” noted Jigar Trivedi, Senior Research Analyst at Reliance Securities. “Market participants are now almost fully pricing in a quarter-point Fed rate cut this month and another in December,” he said.
The Silver Institute also projected a fifth consecutive year of global supply deficit, adding to bullish sentiment. Axis Securities noted that Comex silver prices are now inching closer to the psychological $50 per ounce mark, underscoring robust investor interest across precious metals.
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