On Tuesday, gold prices skyrocketed by Rs 1,217, reaching a record high of Rs 1,17,561 per 10 grams in the domestic futures market. This surge comes as investors react to the looming threat of a US government shutdown and anticipate further interest rate cuts by the Federal Reserve.
Trading on the Multi Commodity Exchange (MCX), the December gold futures extended their gains for the fourth consecutive session by climbing 1.04 per cent from the previous day’s close. The continuous rise reflects strong market sentiments about the reliability of gold as a safe-haven asset amid heightened economic anxieties.
In a parallel trend, the February 2026 contract for gold futures soared by Rs 1,314 or 1.12 per cent, marking a lifetime high at Rs 1,18,788 per 10 grams. This robust performance underscores the increasing investor appetite for gold as traditional markets exhibit volatility.
Silver, too, marked significant gains. The December silver futures price surged by Rs 1,101 or 0.77 per cent, reaching Rs 1,44,200 per kilogram on the MCX, while the March 2026 contract for silver surged by Rs 1,127 or 0.78 per cent, peaking at Rs 1,45,858 per kg.
Rahul Kalantri, Vice-President of Commodities at Mehta Equities Ltd, highlighted that “gold and silver extended their bullish momentum as safe-haven demand surged amid concerns over a potential US government shutdown.” The anticipated Federal Reserve actions, along with new tariff measures, fuel expectations for further increases in precious metal prices.
Globally, the trend mirrored domestic movements. Amid rising uncertainties, gold futures for December delivery in international markets climbed over 1 per cent, reaching USD 3,895.22 per ounce. Silver also witnessed a marginal increase, reaching USD 47.41 per ounce, drawing interest from investors worldwide.
Jigar Trivedi, Senior Research Analyst at Reliance Securities, noted that “gold prices rose to a fresh record high of USD 3,895 per ounce, moving towards their biggest monthly gain in 14 years.” This increased demand displays how global investors swiftly pivot to safe-haven assets when economic conditions appear precarious.
So far in September, gold futures have appreciated by over 11 per cent, reflecting a significant shift in market dynamics. The potential for a US government shutdown looms large after talks between President Donald Trump and congressional leaders ended without an agreement on short-term funding. With funding set to expire at midnight on Tuesday, the risk of a government shutdown increases.
Trivedi pointed out that “if no agreement is reached, a shutdown would begin on Wednesday, creating uncertainty around the release of key economic data, including the September nonfarm payrolls report.” Such a scenario could lead to further fluctuations across financial markets.
As the market grapples with these uncertainties, the implementation of new US tariffs on various sectors, including heavy trucks and patented drugs, also takes effect on Wednesday, adding additional pressure on domestic and international trade.
“Last week, the US macroeconomic data reinforced expectations that the Federal Reserve might implement additional rate cuts. This trend contributes to gold’s allure as a stable investment during anxiety-laden periods,” Trivedi emphasized.
In September alone, gold exchange-traded funds attracted USD 10.5 billion in investments, pushing the total inflows for the year to around USD 50 billion. Renisha Chainani, Head of Research at Augmont, stated that as global economic and political uncertainties persist, investors are prioritizing safe-haven assets like gold.
