Mumbai, Oct 17 (IANS) Gold and silver prices in India soared to new record highs on Friday, following strong global cues. 

A weaker US dollar and rising spot demand pushed prices higher, with investors rushing to buy amid expectations of further gains.

On the Multi Commodity Exchange (MCX), gold December futures surged by over Rs 2,000, or 1.6 per cent, to hit an all-time high of Rs 1,31,920 per 10 grams.

Silver December futures also climbed nearly Rs 2,000, or 1.2 per cent, reaching a record Rs 1,69,676 per kg.

Globally, gold is on track for its best weekly performance since 2008. The rally is being driven by rising US-China trade tensions and growing expectations of another US Federal Reserve rate cut.

The US dollar index slipped by 0.20 per cent, making gold cheaper for buyers using other currencies and increasing its appeal as a safe-haven asset.

In India, demand for gold remains strong despite the soaring prices. Analysts said that customers are buying more gold fearing prices may rise further.

They added that instead of slowing down due to high prices, the market is witnessing a “fear of missing out” trend among buyers.

“The absence of fresh cues and persistent concerns over the US fiscal situation have strengthened safe-haven demand, driving gold prices higher,” analysts said.

“With traders closely watching for any signs of government reopening, gold is likely to remain elevated in the near term,” they stated.

“Support levels are seen at Rs 1,26,000–Rs 1,24,500, while resistance is placed around Rs 1,29,000–Rs 1,30,000," experts mentioned.

So far this year, domestic gold prices have surged by over 65 per cent, supported by global political and economic uncertainties, heavy central bank purchases, expectations of lower US interest rates, and strong inflows into gold-backed exchange-traded funds (ETFs).