Mumbai, Oct 17: Gold and silver prices in India surged to unprecedented levels on Friday, driven by robust global trends.

The rally was fueled by a weakening US dollar and heightened spot market demand, prompting investors to accelerate purchases amid growing anticipation of continued price increases.

Gold and silver futures on the Multi Commodity Exchange (MCX) jumped by over Rs 2,000, marking a 1.6% rise to reach an unprecedented Rs 1,31,920 per 10 grams.

Silver December futures followed suit, climbing nearly Rs 2,000 or 1.2%, to hit a historic Rs 1,69,676 per kilogram.

On the global front, gold is poised for its strongest weekly gain since 2008, fueled by escalating US-China trade tensions and mounting speculation over another interest rate cut by the US Federal Reserve.

In India, demand for gold remains strong despite the soaring prices.

Despite soaring prices, the gold market continues to attract buyers, driven by a growing “fear of missing out,” analysts observed.

They noted that the lack of fresh economic cues, coupled with ongoing concerns about the US fiscal landscape, has intensified safe-haven demand, propelling gold prices upward.

Also read: Gold Prices Hit Record Rs 1.27 Lakh Per 10 Grams On MCX

“With traders closely monitoring developments around a potential government reopening, gold is expected to remain buoyant in the near term,” experts said.

Technical analysts have identified support levels between Rs 1,24,500 and Rs 1,26,000, while resistance is projected around Rs 1,29,000 to Rs 1,30,000.

So far this year, domestic gold prices have surged by more than 65%, bolstered by global geopolitical and economic uncertainties, aggressive central bank buying, expectations of lower US interest rates, and strong inflows into gold-backed exchange-traded funds (ETFs).