The gold prices surged over 0.5 per cent to hit record highs on Wednesday, pushing above $4,500 an ounce due to escalating US‑Venezuela tensions and expectations for more US rate cuts next year.

MCX gold February futures rose 0.44 per cent to Rs 1,38,485 per 10 grams, while MCX silver surged 1.79 per cent to a record high of Rs 2,23,593 per kilogram (as of 10.05 am).

The dollar index had declined 0.20 per cent during the session, making gold cheaper in overseas currencies.

"Spot gold surged past the psychological $4,500 per ounce milestone, propelled by safe-haven demand and rate cut expectations. Silver touched a fresh all-time high and surged beyond $72," said Devarsh Vakil, Head of Prime Research at HDFC Securities.

Silver has gained 24 per cent in December and 135 per cent year-over-year, reflecting tight supply-demand fundamentals and robust safe-haven flows, Vakil added.

Domestic spot gold prices have surged over 76 per cent year‑to‑date and international gold prices over 70 per cent in 2025, on track for their strongest annual performance since 1979.

Platinum traded above $2,300 an ounce for the first time in several decades, while palladium also recorded gains.

The US Coast Guard this month seized a super tanker under sanctions carrying Venezuelan oil and tried to intercept two more Venezuela‑related ships over the weekend heightening tensions.

Killing of a Russian army general in a bomb attack on Monday also contributed to increased geo-political risk and supported gold and silver.

Gold has support at Rs 1,35,550-Rs 1,34,710 zone, while silver has support at Rs 2,11,150-Rs 2,10,280 zone, according to analysts.

Aggressive central bank buying, expectations of US Fed rate cuts, concerns over impact of US tariffs, geopolitical tensions, and robust inflows into gold and silver ETFs drove the gold and silver prices this year.