Gold prices surged on Tuesday, hitting a fresh record high of Rs 1,17,561 per 10 grams in the domestic futures market. The surge followed sharp gains in the overseas market as investors reacted to the risk of a US government shutdown and shifting expectations regarding Federal Reserve interest rates.
On the Multi Commodity Exchange (MCX), December gold futures rallied by Rs 1,217, marking a 1.04 percent increase. This is the fourth consecutive session of gains for the precious metal.
Simultaneously, February 2026 gold contracts also soared, climbing by Rs 1,314 or 1.12 percent to reach an all-time high of Rs 1,18,788 per 10 grams.
Silver prices mirrored gold’s upward trend, achieving record highs as well. Silver futures for December delivery rose by Rs 1,101, increasing by 0.77 percent to reach a peak of Rs 1,44,200 per kilogram on the MCX.
The March 2026 silver contracts appreciated by Rs 1,127 or 0.78 percent, hitting a record of Rs 1,45,858 per kilogram.
“Gold and silver enjoy bullish momentum as safe-haven demand surges amidst concerns over a potential US government shutdown, coupled with expectations of further Federal Reserve rate cuts,” stated Rahul Kalantri, Vice-President of Commodities at Mehta Equities Ltd.
The global market also saw gold reaching lifetime highs, with December futures climbing above 1 percent to hit USD 3,895.22 per ounce. Silver’s prices also increased, attaining USD 47.41 per ounce.
“Gold prices are on the rise, nearing USD 3,895 per ounce and heading for their largest monthly gain in 14 years. Investors are rushing towards safe-haven assets due to concerns over the impending US government shutdown,” explained Jigar Trivedi, Senior Research Analyst at Reliance Securities.
September has proven lucrative for precious metals, with gold futures enjoying over an 11 percent increase so far.
Concerns intensified following talks between President Donald Trump and US congressional leaders on Monday that concluded without a funding agreement, heightening the risk of a shutdown. The current funding runs out tonight at midnight.
If no consensus emerges, a shutdown could commence on Wednesday, possibly delaying key economic data releases, including the September nonfarm payrolls report.
Adding to market apprehensions, new US tariffs affecting heavy trucks, patented drugs, and other items are set to commence on Wednesday.
“Recent US macroeconomic data reinforced speculation that the Federal Reserve may implement further rate cuts at its remaining meetings this year,” Trivedi noted.
Furthermore, Gold Exchange-Traded Funds (ETFs) attracted USD 10.5 billion in September, bringing total year-to-date inflows to approximately USD 50 billion. This surge reflects investors flocking to safe-haven assets amid ongoing global economic and political uncertainties,” said Renisha Chainani, Head of Research at Augmont.
