Gold prices soared to a historic high of Rs 1,17,561 per 10 grams on Tuesday, as the precious metal’s safe-haven appeal drove demand amid fears of a possible US government shutdown. The surge follows sharp increases in the international market, reflecting investor anxiety over economic stability.
On the Multi Commodity Exchange (MCX), gold futures for December delivery rocketed by Rs 1,217, or 1.04 per cent, marking four consecutive sessions of gains. Similarly, the February 2026 futures for gold jumped to a lifetime high of Rs 1,18,788 per 10 grams.
Silver also witnessed remarkable growth, with December delivery futures climbing Rs 1,101, or 0.77 per cent, reaching Rs 1,44,200 per kilogram. March 2026 silver contracts followed suit, increasing by Rs 1,127, or 0.78 per cent, to a new high of Rs 1,45,858 per kg.
“Safe-haven demand for gold and silver intensified due to concerns about a potential US government shutdown. Coupled with expectations of interest rate cuts by the Federal Reserve, these factors are pushing prices to new heights,” stated Rahul Kalantri, Vice-President of Commodities at Mehta Equities Ltd.
Global markets mirrored this bullish trend. Gold futures for December delivery climbed over 1 per cent to achieve a new peak of USD 3,895.22 per ounce, while silver edged up to USD 47.41 per ounce.
“The price of gold reached a fresh high of USD 3,895 per ounce, on track for its largest monthly gain in 14 years. This surge is primarily driven by investor flight toward safe-haven assets amid escalating concerns of a US government shutdown,” explained Jigar Trivedi, Senior Research Analyst at Reliance Securities.
In just September, precious metal futures have gained over 11 per cent, demonstrating robust investor interest. On the political front, discussions between President Trump and US congressional leaders resulted in no agreement on short-term funding, escalating shutdown fears with the current funding timeline set to end on midnight Tuesday.
“A shutdown could commence on Wednesday, disrupting the timeline for essential economic data releases, including the September nonfarm payrolls report,” added Trivedi.
Market tensions heightened further with new tariffs on heavy trucks, patented drugs, and other goods expected to activate on Wednesday.
“Recent US macroeconomic indicators reaffirm the likelihood of additional rate cuts by the Federal Reserve during its remaining meetings this year,” noted Trivedi.
Gold exchange-traded funds reported inflows totaling USD 10.5 billion in September alone, pushing total investments this year to approximately USD 50 billion. This influx underlines the trend as investors gravitate toward safe-haven assets amid mounting global economic and political uncertainties,” confirmed Renisha Chainani, Head of Research at Augmont.
