Gold hit record Rs 1.27 lakh/10 g, crosses $4,200/ ounce on Fed rate cut hopes

New Delhi: Gold prices on Wednesday surged by Rs 1,244, reaching a new all-time high of Rs 1,27,500 per 10 grams in domestic futures trade, while the yellow metal breached the $4,200 per ounce level in global markets, fuelled by strong safe-haven demand.

Analysts said traders rushed to safe-haven assets after renewed geopolitical and trade worries clouded the global economic outlook.

The sentiment was further buoyed by remarks from Federal Reserve Chair Jerome Powell, hinting at possible monetary easing later this year.

On the Multi Commodity Exchange (MCX), gold futures for December delivery extended their rally for the fourth consecutive session, by climbing Rs 1,244, or 0.98 per cent, to hit a record of Rs 1,27,500 per 10 grams.

Similarly, the February 2026 contract for the precious metal appreciated by Rs 943, or 0.73 per cent, to a new peak of Rs 1,28,435 per 10 grams.

In addition, silver futures for December delivery increased by Rs 1,256, or 0.78 per cent, to Rs 1,60,760 per kilogram. The white metal had touched an all-time high of Rs 1,62,700 per kg on Tuesday.

The March 2026 contract for silver futures climbed by Rs 940, or 0.59 per cent, to Rs 1,60,522 per kg on the commodities bourse. It had reached a lifetime high of Rs 1,63,549 per kilogram in the previous market session.

In the overseas market, Comex gold futures for December delivery surged nearly 2 per cent to hit a record $4,211 per ounce on Wednesday.

"Gold prices climbed to $4,200 per ounce and extended its bullish run to notch a fresh record as investors sought the metal’s safety and ramped up bets of additional US monetary easing," Jigar Trivedi, Senior Research Analyst at Reliance Securities, said.

The latest escalation in US-China trade tensions added to the risk-off sentiment, boosting gold's appeal.

Meanwhile, US President Donald Trump accused China of engaging in 'economically hostile' behaviour by halting soybean imports and warned of possible retaliatory measures, including a cooking oil embargo.

The remarks followed Beijing's warning of further retaliation after it imposed sanctions on five US units of South Korean shipbuilder Hanwha Ocean, heightening trade tensions between the world's two largest economies.

Comex silver futures for December delivery also gained 1.29 per cent to trade at $51.27 per ounce. The white metal had hit a lifetime high of $52.49 per ounce on Tuesday.

According to commodity market experts, the bullion rally has also been fuelled by growing bets on US rate cuts as the Federal Reserve faces signs of a cooling economy.

On Tuesday, Federal Reserve Chair Jerome Powell at the National Association for Business Economics (NABE) conference, cautioned that the sharp slowdown in hiring poses a significant risk to the US economy, reinforcing expectations of two more rate cuts this year.

Meanwhile, the International Monetary Fund (IMF) in its ‘World Economic Outlook’ report released on Tuesday raised its global growth forecast for 2025, citing improved tariff and financial conditions.

However, it warned that ongoing trade frictions, particularly between the US and China, could weigh on global economic stability.