Gold rate today: Gold prices touch Rs 1.26 lakh per 10 grams; silver goes past Rs 1.62 lakh/kg - what’s driving the record rally?

Gold rate today: Gold and silver prices are touching new lifetime highs everyday ahead of Dhanteras and Diwali. On Tuesday, gold and silver futures achieved unprecedented peaks in domestic trading on Tuesday, reflecting record gains internationally, driven by escalating US-China trade conflicts and anticipated US Federal Reserve rate reductions, which enhanced the appeal of safe-haven investments.On MCX, December delivery gold futures advanced by Rs 2,301 (1.84 per cent) to reach Rs 1,26,930 per 10 grams. The February 2026 contract rose by Rs 2,450 (1.94 per cent) to Rs 1,28,220 per 10 grams."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," Manav Modi, Analyst – Precious Metal, Motilal Oswal Financial Services, said according to a PTI report.Silver futures also witnessed substantial gains on MCX. December delivery contracts increased by Rs 8,055 (5.2 per cent) to Rs 1,62,700 per kilogram.The March 2026 silver futures contract increased by Rs 9,257 (6 per cent) to Rs 1,63,549 per kg on the exchange.International markets saw both precious metals achieve record levels on Tuesday. December delivery Comex gold increased by over 1 per cent to USD 4,190.67 per ounce.

"Gold prices have exhibited a 60 per cent increase year-to-date, crossing the significant USD 4,100 threshold for the first time on Monday, supported by geopolitical and economic uncertainties, rate-cut projections, substantial central bank purchases, and robust exchange traded funds (ETF) inflows," Modi said.Silver futures designated for December delivery rose by 4 per cent, reaching a record high of USD 52.49 per ounce."Silver continues its upward trajectory, exceeding the USD 52 per ounce level, establishing a new record on Comex, amid severe supply constraints in the global market, affecting premiums and parities whilst driving prices upward," he further stated.The appreciation in precious metals occurred as geopolitical tensions intensified following China's announcement to broaden rare-earth export controls last week, leading US President Donald Trump to respond with threats of 100 per cent tariffs on Chinese imports and implementation of export limitations on essential US-made software from November 1.Meanwhile, US Treasury Secretary Scott Bessent indicated that Trump's scheduled meeting with Chinese President Xi Jinping in South Korea remains confirmed for later this month.The prolonged US federal government shutdown, entering its 13th day, has started to have adverse effects on the nation's economic performance, Modi noted.Jigar Trivedi, Senior Research Analyst at Reliance Securities, said, "Investors are now awaiting remarks from Federal Reserve Chair Jerome Powell at the National Association for Business Economics (NABE) annual meeting later in the day, hoping to gain insights on the US central bank's rate-cut path."According to Manav Modi of Motilal Oswal Financial Services, "There are several data points such as Consumer Price Index (CPI) inflation, retail sales and others set to release later this week. However, if the US shutdown persists, these data, along with jobs data, will be postponed."