Mumbai: Gold prices soared to a fresh record high on Thursday as investors turned to the safe-haven metal amid rising geopolitical tensions and economic uncertainty. 

Expectations of US interest rate cuts and a weaker dollar also boosted demand for the yellow metal.

MCX Gold December futures surged by nearly Rs 1,200, or 1 per cent, to hit a new record of Rs 1,28,395 per 10 grams.

Similarly, MCX Silver December futures jumped over Rs 1,900, or more than 1 per cent, to reach a fresh high of Rs 1,64,150 per kg.

In the morning trade, gold futures on MCX were trading 0.60 per cent higher at Rs 1,27,960 per 10 grams, while silver futures were up 1 per cent at Rs 1,63,812 per kg.

Spot gold rose 0.4 per cent to $4,224.79 per ounce in early trade, after touching a record high of $4,225.69.

Meanwhile, US gold futures for December delivery gained 0.9 per cent to $4,239.70 per ounce.

Gold, which performs well in periods of low interest rates, has surged 61 per cent so far this year as investors continue to seek refuge from global market volatility.

The US dollar index slipped 0.1 per cent, hovering near a one-week low, making gold more attractive to foreign investors as it became cheaper in other currencies.

Adding to global tensions, US officials on Wednesday criticised China’s expanded export controls on rare earth materials, calling them a threat to global supply chains and hinting at possible retaliatory measures.

“Gold and Silver both continues to surge significantly on domestic as well as on COMEX amid persistent geopolitical and economic uncertainties, with expectations of US rate cuts and a weaker dollar adding support,” experts said.

China has further tightened their rare export controls which the US officials have criticised and also signalled a possibility of retaliation amidst this move, as per the experts.

“There are several data points like CPI, Retail sales and others set to release later this week however, if the US shutdown persists these data along with jobs data could be postponed,” experts mentioned. (IANS)