Washington: Gold prices surged to new record highs on Wednesday, reaching $4,186.68 per ounce, fueled by investor demand for safe-haven assets as tensions between the United States and China deepened and expectations for US Federal Reserve rate cuts grew stronger. Spot gold was last seen trading around $4,178 per ounce, while December futures touched $4,197.50.

In India, gold also hit fresh highs on the Multi Commodity Exchange (MCX), with the December contract peaking at Rs 1,27,500 per 10 grams. The sharp rise reflects robust global sentiment, as investors shift away from riskier assets amid fears of economic slowdown and political uncertainty.

Silver mirrored gold’s movement, climbing to Rs 1,60,594 per kilogram, boosted by both industrial demand and safe-haven flows. Globally, silver prices rose about 0.6 percent alongside gold’s advance.

The rally follows escalating trade friction after President Donald Trump threatened 100 percent tariffs on Chinese imports in response to Beijing’s restrictions on rare earth exports. The move prompted global markets to turn volatile, driving demand for gold as a secure store of value.

Adding to the momentum, the US Federal Reserve is widely expected to announce interest rate cuts later this month. Market analysts said dovish comments from Fed Chair Jerome Powell and ongoing concerns about the government shutdown have pushed investors toward gold.

Gold has now gained more than 55 percent so far in 2025, making it one of the best-performing assets this year. Analysts predict the trend could continue as geopolitical tensions persist and major economies signal looser monetary policies.