Silver, gold smash new records in futures trade on Fed rate cut bets, geopolitical tensions

New Delhi: Silver futures surged by Rs 12,803 to a fresh peak of Rs 2,87,990 per kg on Wednesday, while gold rallied Rs 932 to hit a lifetime high of Rs 1,43,173 per 10 grams, amid rising expectations of rate cuts by the US Federal Reserve and intensified geopolitical tensions.

Extending gains for the fourth straight day, silver futures for March delivery appreciated by Rs 12,803, or 4.65 per cent, to touch a lifetime high of Rs 2,87,990 per kilogram on the Multi Commodity Exchange (MCX).

With the latest rise, the white metal has zoomed by Rs 35,265, or 14 per cent, over the past four trading sessions, from Rs 2,52,725 per kg on Friday. So far this year, silver has skyrocketed by Rs 52,289, or 22.18 per cent, from Rs 2,35,701 per kilogram recorded on December 31, 2025.

Gold futures for the February contract also climbed by Rs 932, or 0.65 per cent, to hit a new record of Rs 1,43,173 per 10 grams on the MCX.

"Gold and silver surged sharply on Wednesday, hitting fresh record highs as softer US inflation data strengthened expectations of Federal Reserve rate cuts this year," Rahul Kalantri, Vice-President of Commodities, Mehta Equities Ltd, said.

On the global front, silver futures breached the USD 91-per-ounce mark for the first time on the Comex, extending its four-day rally. The rate for the March contract increased by USD 5.03, or 5.83 per cent, to a new peak of USD 91.37 per ounce.

Kalantri said that persistent geopolitical risks and economic uncertainties continued to underpin safe-haven demand for precious metals.

"Civil unrest in Iran and rising geopolitical tensions further supported buying interest in precious metals," he said.

Comex gold futures for February delivery also gained by USD 37.61, or 0.82 per cent, hovering near its record high of USD 4,636.71 per ounce, after touching a peak of USD 4,643.34 per ounce on Tuesday.

Meanwhile, market participants stayed cautious after criminal charges were filed against Federal Reserve Chair Jerome Powell over alleged mismanagement of renovation funds at the central bank's Washington headquarters. The development sparked renewed concerns over the Fed's independence, leading to a sharp drop in the US dollar, analysts said.

"Any perceived threat to the Fed's autonomy could weigh on the country's sovereign rating. However, the dollar later rebounded after global central bank chiefs expressed support for Powell amid his feud with President Donald Trump," an expert said.

Traders are now pricing in two to three rate cuts by the US Federal Reserve this year, which analysts believe could extend the ongoing rally in bullion prices.