Gold and silver prices rallied on Friday to hit fresh lifetime highs in the futures trade, tracking record gains in international markets amid a weakening US dollar and rising expectations of interest rate cuts by the Federal Reserve.
On the Multi Commodity Exchange (MCX), the March contract of silver soared by ₹12,638, or nearly 4%, to scale a new peak of ₹3,39,927 per kg.
Silver futures in the previous session on Wednesday had touched a record high of ₹3,35,521 per kgSilver futures in the previous session on Wednesday had touched a record high of ₹3,35,521 per kg.
1 January 2026
Get the latest issue of Outlook Business
Gold also scaled a fresh lifetime high, advancing for the fifth straight day. The yellow metal for February delivery jumped by ₹2,885, or 1.84% to ₹ 1,59,226 per 10 grams on the MCX.
It had settled at ₹1,56,341 per 10 grams on Thursday.
"Gold's surge to record highs on the MCX reflects a powerful convergence of global risk factors and macroeconomic tailwinds," Rahul Gupta, Chief Business Officer – Ashika Group, said.
Gupta attributed the rally to heightened geopolitical tensions and persistent geoeconomic uncertainty, which have reignited safe-haven demand. He added that the weakening US dollar has further improved bullion's sentiment among global investors.
Market participants are increasingly pricing in the likelihood of rate cuts by the US Fed, which has further reduced the opportunity cost of holding non-yielding assets such as gold, he added.
The dollar index, which measures the greenback's strength against a basket of six currencies, was trading 0.05% lower at 98.31.
SILVER CROSSES $99 AN OUNCE MARK, GOLD NEARS $5,000 LEVEL IN GLOBAL MARKETS In the international markets, both gold and silver futures scaled historic levels, with the white metal crossing the $99 per-ounce-mark for the first time on the Comex.
Silver futures for March delivery gained $3.02, or 3.14% to hit a new peak of $99.39 per ounce in the overseas trade on Friday.
Comex gold futures for the February contract also increased by $56.6, or 1.15% to a record of $4,970 per ounce.
The yellow metal had surpassed the crucial $4,900 per ounce level before closing at $4,913.4 per ounce on Thursday.
"Gold and silver surged to fresh all-time highs, with gold touching $4,970 (₹1,59,200) and silver hitting $99.2 (₹3,40,000), marking their strongest weekly performance since March 2020, supported by lingering geopolitical risks, and sustained safe-haven demand," Renisha Chainani, Head - Research at Augmont, said.
She further stated that the rally was driven by a mix of safe-haven flows and political developments in Europe.
"Market sentiment was further influenced by President Donald Trump's statement that he had secured permanent US access to Greenland through a NATO deal, though details remain unclear and Denmark has reiterated its sovereignty," Chainani said.
Trump's decision to cancel planned tariffs on European nations, with the EU agreeing to suspend countermeasures while seeking clarity on future policy direction.
"Expectations of monetary easing have also grown, as Trump is expected to appoint the next Federal Reserve Chair, with markets pricing in a more dovish candidate.
"Silver's sharp rally has been amplified by a historic short squeeze, strong retail participation, and China's tightening export controls, adding to supply concerns," Chainani added.
