Gold prices in India surged dramatically, reaching a record high of Rs 1,17,561 per 10 grams on Tuesday. The spike in value comes amidst rising safe-haven demand driven by fears of a potential US government shutdown and ongoing expectations of further interest rate cuts by the Federal Reserve.
The surge amounts to an increase of Rs 1,217, representing a 1.04 percent gain for December delivery futures on the Multi Commodity Exchange (MCX) over the previous session. This marks the fourth consecutive session of rising prices for the yellow metal.
The February 2026 contract for gold futures also achieved a new milestone, trading at Rs 1,18,788 per 10 grams after gaining Rs 1,314 or 1.12 percent. This positive trend in gold prices signals a strong investor inclination towards safe-haven assets amidst economic uncertainty.
Silver followed suit, with prices also hitting new peaks on Tuesday. December delivery futures for silver jumped significantly, increasing by Rs 1,101 or 0.77 percent to reach Rs 1,44,200 per kilogram. The March 2026 contract for silver futures appreciated as well, reaching Rs 1,45,858 per kg.
According to market experts, the ongoing bullish momentum in gold and silver prices stems from increased safe-haven demand. Rahul Kalantri, Vice-President of Commodities at Mehta Equities Ltd, remarked, “The concerns surrounding a potential US government shutdown, combined with additional tariff measures and expectations of further Federal Reserve rate cuts, are driving the prices of precious metals higher.”
Global trading also reflected these trends, as bullion prices hit lifetime highs internationally. Gold futures for December delivery rose over 1 percent, reaching USD 3,895.22 per ounce, while silver experienced a slight increase to USD 47.41 per ounce.
In a market filled with uncertainty, Jigar Trivedi, Senior Research Analyst at Reliance Securities, observed, “Gold prices have experienced a surge to a fresh record high of USD 3,895 per ounce, setting the stage for their largest monthly gain in 14 years as investors flock to safe-haven assets.” Gold futures have gained more than 11 percent throughout September.
This price escalation coincides with failed negotiations between President Trump and US congressional leaders, which ended without an agreement on short-term funding. As the current funding expires at midnight Tuesday, the risk of a public sector shutdown looms large. If an agreement is not secured, a shutdown will commence on Wednesday, potentially delaying the dissemination of crucial economic data, including the September nonfarm payrolls report.
Market jitters are further compounded by impending new US tariffs on heavy trucks, patented drugs, and other commodities, which are set to come into effect on Wednesday. Additionally, last week’s US macroeconomic data solidified expectations for additional Federal Reserve rate cuts in upcoming meetings.
Renisha Chainani, Head of Research at Augmont, highlighted significant inflows into gold exchange-traded funds, stating, “In September alone, USD 10.5 billion flowed into these funds, bringing total inflows for the year close to USD 50 billion as investors seek refuge in safe-haven assets amid global economic and political turmoil.”
The current trends in gold and silver prices illustrate the increasing importance of these precious metals as safe investments during uncertain times, making them attractive choices for investors navigating turbulent market conditions.
