Gold and silver prices surged to all-time highs on Tuesday, as investors sought safe havens amid growing US-China trade tensions and expectations of interest rate cuts by the US Federal Reserve. On the Multi Commodity Exchange (MCX), December gold futures jumped Rs 2,301, or 1.84 per cent, to a new peak of Rs 1,26,930 per 10 grams. February 2026 gold contracts also touched record highs, climbing Rs 2,450, or 1.94 per cent, to Rs 1,28,220 per 10 grams.
Manav Modi, Analyst – Precious Metal at Motilal Oswal Financial Services, said, “Gold prices climbed to a record high as renewed US-China trade tensions exacerbated broader uncertainty, bolstering safe-haven demand, while the prospects of interest rate cuts by the Federal Reserve lent support, with silver also reaching an all-time peak.”
Silver prices mirrored gold’s upward momentum. December silver futures rose Rs 8,055, or 5.2 per cent, to a record Rs 1,62,700 per kilogram, while March 2026 contracts surged Rs 9,257, or 6 per cent, to Rs 1,63,549 per kilogram.
Global Factors and Market Dynamics
Internationally, Comex gold for December delivery climbed over 1 per cent to an all-time high of $4,190.67 per ounce, marking a 60 per cent surge year-to-date. Silver futures rose 4 per cent to $52.49 per ounce, also a record. Modi attributed the rally to geopolitical tensions, rate-cut expectations, strong central bank buying, and exchange-traded fund (ETF) inflows.
Geopolitical risks intensified as China announced expansion of rare-earth export controls, prompting US President Donald Trump to threaten 100 per cent tariffs on Chinese imports. The ongoing US federal government shutdown, now in its 13th day, has added further uncertainty to the market. Jigar Trivedi, Senior Research Analyst at Reliance Securities, noted that investors are closely watching Federal Reserve Chair Jerome Powell’s remarks at the NABE annual meeting for clues on potential rate cuts.
Chennai Gold Rates Today
As Dhanteras approaches, gold remains in strong demand in Chennai. Current rates stand at Rs 11,825 per gram for 22-karat gold and Rs 12,900 per gram for 24-karat gold (999 gold). Analysts said that amid economic volatility and market swings, gold continues to be a preferred asset for wealth preservation and long-term security.