SRINAGAR: Gold prices surged on Tuesday, climbing Rs 651 to an all-time high of Rs 1,20,900 per 10 grams in domestic futures trading, buoyed by strong global cues amid the prolonged US government shutdown and mounting expectations of Federal Reserve rate cuts, according to multiple national media reports.
On the Multi Commodity Exchange (MCX), December gold futures rose 0.54 per cent to Rs 1,20,900 per 10 grams, while the February 2026 contract gained Rs 648, or 0.53 per cent, to a lifetime high of Rs 1,22,231 per 10 grams.
“Gold prices have rallied to a record on account of US economic and political uncertainty, alongside growing anticipation of further interest rate cuts by the Federal Reserve,” said Manav Modi, Analyst, Precious Metal Research at Motilal Oswal Financial Services, reports, The Times of India.
Silver too strengthened, with futures up Rs 281, or 0.19 per cent, trading near a record Rs 1,47,800 per kilogram. The March 2026 contract advanced Rs 327, or 0.21 per cent, to Rs 1,49,500 per kg after hitting a lifetime high of Rs 1,49,605 in the previous session.
Globally, Comex gold futures for December delivery breached the USD 4,000 per ounce mark for the first time, rising nearly 1 per cent, while silver futures eased slightly to USD 48.43 per ounce.
Analysts attributed the surge to the US government shutdown, which has stalled federal programmes and delayed key economic data, including September’s jobs report. The absence of official indicators, coupled with rising bets on two Fed rate cuts this year, has strengthened demand for safe-haven assets such as gold. Experts added that continued central bank buying worldwide is further driving the rally in precious metals.
