Gold prices surged by ₹1,217 to reach a new record of ₹1,17,561 per 10 grams in the Indian futures market on Tuesday. This spike comes as investors react to a potential US government shutdown and anticipate further interest rate cuts from the Federal Reserve.
The Multi Commodity Exchange (MCX) recorded gold futures for December delivery rising for the fourth consecutive session, a jump of 1.04 percent. Similarly, the February 2026 gold futures contract rose ₹1,314 or 1.12 percent, reaching ₹1,18,788 per 10 grams.
Alongside gold, silver also recorded impressive gains. December silver futures increased by ₹1,101 or 0.77 percent, pricing at ₹1,44,200 per kilogram on the MCX. The March 2026 contract for silver futures escalated by ₹1,127 or 0.78 percent to hit ₹1,45,858 per kg.
“Gold and silver prices are climbing due to increased safe-haven demand driven by concerns over the impending US government shutdown. Expectations for Fed rate cuts are supporting the rise in precious metals,” stated Rahul Kalantri, Vice-President of Commodities at Mehta Equities Ltd.
Globally, bullion prices mirrored this upward trend. Gold futures for December delivery soared above 1 percent to reach USD 3,895.22 per ounce, while silver hovered at USD 47.41 per ounce.
“Gold prices are climbing toward a record high of USD 3,895 per ounce, positioning for their largest monthly gain in 14 years. Investors are flocking to safe-haven assets amid fears of a US government shutdown,” noted Jigar Trivedi, Senior Research Analyst at Reliance Securities.
In September alone, precious metal futures have appreciated by more than 11 percent. Meanwhile, ongoing discussions between President Donald Trump and US congressional leaders yielded no agreement for short-term funding, heightening shutdown risks as the current funding expires at midnight Tuesday.
“Should a deal not materialize, the shutdown may commence on Wednesday, potentially impacting the release of critical economic indicators, including the September nonfarm payrolls report,” added Trivedi.
Compounding market fears, new tariffs on heavy trucks and patented drugs are set to be implemented this Wednesday. Last week’s US macroeconomic data reinforced expectations of additional rate cuts by the Federal Reserve in upcoming meetings.
“In September, gold exchange-traded funds attracted USD 10.5 billion, pushing total inflows this year to approximately USD 50 billion as investors sought the safety of gold amid rising global economic and political tensions,” reported Renisha Chainani, Head of Research at Augmont.
