Mumbai, Jan 14 || Gold hovered near fresh record high while silver touched new peak on Wednesday, as softer US inflation data and elevated geopolitical tensions boosted safe haven demand among investors.
MCX gold February futures rose 0.53 per cent to Rs 1,42,995 per 10 grams around 10.05 am, while MCX silver March futures climbed 4.53 per cent to Rs 2,87,640 per kg.
US core Consumer Price Index (CPI) data for December showed a 0.2 per cent month‑on‑month surge and 2.6 per cent year‑on‑year rise, below forecasts and reinforcing market bets that the Federal Reserve will cut rates in 2026, driving gold prices higher.
Analyst said the softer inflation print, coupled with mixed US jobs data, will lead the Fed likely to hold in January but likely undertake two to three cuts through the year, supporting gold prices.
"Ongoing geopolitical and economic uncertainties continued to fuel safe-haven demand. Civil unrest in Iran and rising geopolitical tensions further supported buying interest in precious metals. Core CPI was below expectations of 0.3 per cent, and remained steady on year-on-year basis, reinforcing the view that underlying inflation pressures are easing," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.