Gold prices reached a new record high of Rs 1,27,500 per 10 grams on the MCX (December contract) during early Wednesday trading, driven by safe-haven demand amidst geopolitical uncertainty and anticipated US rate cuts.The precious metal was trading at Rs 1,26,798, showing an increase of Rs 542 or 0.43% from the previous session.Silver prices followed suit, rising by Rs 1,090 or 0.68% to Rs 1,60,594 per kilogram, supported by safe-haven demand, industrial requirements and US-China trade tensions.In global markets, gold prices increased on Wednesday near record levels as investors sought safe-haven assets following renewed US-China trade tensions and expected US interest rate reductions.Spot gold increased 0.4% to $4,155.99 per ounce at 0032 GMT, while US gold futures for December delivery rose 0.3% to $4,174.30.The non-interest-bearing bullion, considered a safe investment during uncertainty, has increased 55% year-to-date, reaching $4,179.48 on Tuesday.Tuesday also saw positive settlements for both metals in domestic and international markets. Gold December futures settled at Rs 1,26,256 per 10 grams, up 1.31%, while silver December futures closed at Rs 1,59,504 per kilogram, gaining 3.14%.Also read: Will gold prices continue to rise this week? Check outlook ahead of DhanterasThe US Fed Chairman’s speech contributed to extended gains in both metals during a volatile session. He noted limited improvement in US employment and inflation post-September policy meeting, whilst expressing concern about the ongoing US shutdown, as quoted by Economic Times.Powell indicated that interest rate decisions would be made on a “meeting-by-meeting” basis, considering labour market weakness and above-target inflation. Markets anticipate a 25-basis-point rate reduction this month and in December.Markets recovered from daily lows following these comments, maintaining positive momentum.The US Dollar Index, DXY, decreased by 0.19 or 0.20%, hovering near 98.85.Gold’s current rally stems from geopolitical and economic uncertainties, expected US rate cuts, strong central bank purchasing, de-dollarisation trends and substantial ETF inflows.For MCX trading, support levels for gold are Rs 1,25,000-1,23,800 with resistance at Rs 1,27,400-1,28,500. Silver’s support lies at Rs 1,58,000-1,55,500 with resistance at Rs 1,61,600-1,64,000.Physical gold rates in key Indian cities:Delhi: Standard gold (22 carat) – Rs 94,184/8 grams; Pure gold (24 carat) – Rs 1,01,264/8 gramsMumbai: Standard gold (22 carat) – Rs 93,912/8 grams; Pure gold (24 carat) – Rs 1,00,968/8 gramsChennai: Standard gold (22 carat) – Rs 93,992/8 grams; Pure gold (24 carat) – Rs 1,01,128/8 gramsHyderabad: Standard gold (22 carat) – Rs 94,264/8 grams; Pure gold (24 carat) – Rs 1,01,376/8 grams(Data taken from ET)(Disclaimer: Recommendations and views on asset classes given by experts are their own. These opinions do not represent the views of The Times of India)