Gold prices today extended their record-breaking rally on Tuesday, supported by multiple global factors including heightened geopolitical tensions, concerns over a potential US government shutdown, aggressive central bank gold buying, and rising expectations of US Federal Reserve rate cuts.
On the Multi Commodity Exchange (MCX), gold price today surged to an all-time high of ₹1,20,900 per 10 grams on October 7, while MCX silver prices hovered near record highs around ₹1,48,000 per kilogram.
In the international bullion market, spot price rose 0.1% to $3,962.63 per ounce, after touching a lifetime high of $3,977.19 earlier in the session. US gold futures for December delivery were up 0.2% at $3,985.30 per ounce.
“Gold prices in India have surged to a record ₹1,20,000 per 10 grams, driven by global economic uncertainty, geopolitical tensions, and expectations of US rate cuts. Central bank buying and a weaker dollar are further fueling the rally,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Additional political instability in France and Japan has further boosted safe-haven demand. Investment demand remains robust, with gold ETF holdings up 17% and silver ETF holdings rising 16% year-to-date, underscoring the sustained interest in precious metals.
Despite record highs, analysts believe festive season demand and positive global cues will continue to support MCX gold prices, while a weaker rupee could add further upside momentum.
Should You Buy or Sell Gold at Record Highs?
According to Trivedi, while the bullish trend in gold remains intact, investors should consider booking partial profits at current highs to manage risk exposure.
“Gold’s role as a hedge remains critical. Retain core holdings for long-term security and use corrective dips as strategic re-entry points. In a world of volatility, gold continues to offer stability, but timing and allocation are key to maximizing returns,” he added.
Trivedi expects to potentially reach ₹1,25,000 per 10 grams by the end of the month.
So far this year, gold prices have climbed nearly 51%, while silver prices have outperformed with around 68% returns.
Silver Outperforms Gold: Is the Trend Sustainable?
Silver price rally has been driven by robust industrial demand, a five-year supply deficit, a favorable gold-silver ratio, and expectations of Fed policy easing.
An outlook by Tata Mutual Fund suggests that silver could outperform gold over the medium term (3–5 years), though short-term volatility remains a key risk.
“Strong investment demand, a large supply deficit, and Fed rate cuts may continue to support prices over the medium to long term. Silver’s growth story is closely tied to industrial demand recovery — particularly from China — and the global supply deficit,” the fund house said in a note.
The fund expects gold prices to consolidate between $3,500 and $4,000 per ounce in the short term.
Investment Strategy: Diversify Between Gold and Silver
Tata Mutual Fund recommends investors stay invested and accumulate on price declines triggered by short-term corrections.
“The overall environment remains favorable for a strategic allocation to gold as a long-term hedge against inflation, geopolitical risks, and currency depreciation,” it said.
Given the current market dynamics, the fund advises investors to maintain a balanced 50:50 allocation between gold and silver, as both metals present compelling opportunities — gold as a strategic asset and silver as a growth-oriented investment.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.