Gold Prices Surge: MCX Gold Hits Record ₹1.35 Lakh on 12 December 2025

The Indian gold market witnessed an extraordinary surge today, with MCX gold soaring to an unprecedented record high of ₹1.35 lakh per 10 grams. This significant jump, exceeding ₹2,700 in a single day, marked a historic milestone for the yellow metal, reflecting strong bullish sentiment. Silver also saw dramatic movements, trading above ₹2 lakh per kg before slipping slightly after achieving its own record high.

Domestically, while some reports indicated that 22K and 24K gold rates declined in certain cities, the overarching trend was one of substantial gains. Hyderabad, for instance, reported surging gold rates, aligning with the national picture where prices hiked by nearly ₹2,000 across India. Specific reports noted gold trading around ₹1.34 lakh and also at ₹1,32,599 per 10 grams, highlighting the dynamic price action throughout the day. Globally, gold prices mirrored this robust performance, jumping above $4,300 an ounce, further cementing its appeal as a safe-haven asset.

Several key factors converged to propel gold to these record levels. A significant contributor was the weakening US dollar, making dollar-denominated gold more attractive to international buyers. Expectations of potential interest rate cuts by the US Federal Reserve also fueled speculative buying, as lower rates typically reduce the opportunity cost of holding non-yielding assets like gold. Furthermore, ongoing geopolitical tensions globally continued to boost bullion's safe-haven appeal. The domestic picture was complicated by the Indian Rupee sliding against the dollar, influenced by weak global cues and foreign institutional investor (FII) outflows, which inherently makes imported gold more expensive in local currency terms, adding to the upward pressure.

For Indian investors and jewelry shoppers, today's rally underscores gold's enduring strength as a hedge against economic uncertainty and currency depreciation. While prices are at historic highs, the prevailing global and domestic factors, including a soft dollar, Fed-cut bets, and geopolitical risks, suggest that gold could continue to find support. Jewelry buyers might consider monitoring daily fluctuations and city-specific rates for potential buying opportunities, possibly adopting a 'buy-on-dips' strategy as suggested by market analysts, given the current volatile yet upward trajectory.