Gold prices on Monday surged by ₹1,447 to a new record of ₹1,19,560 per 10 grams in the domestic futures trade, lifted by safe-haven buying amid the prolonged US government shutdown and growing bets on further Federal Reserve rate cuts.
On the Multi Commodity Exchange (MCX), gold futures for December delivery appreciated by ₹1,447, or 1.22 per cent, to a lifetime high of ₹1,19,560 per 10 grams.
Extending gains for the seventh consecutive session, the February 2026 contract advanced ₹1,512, or 1.27 per cent, to scale a record ₹1,20,845 per 10 grams.
Last week, the yellow metal futures had surged ₹3,222 per 10 grams or 2.8 per cent.
“Physical demand for gold remained mixed, with softness in China offset by steady buying in other Asian markets, anticipating further price gains. SPDR holdings reflected investor interest, rising notably over last week,” said Manav Modi, Analyst, Precious Metal Research at Motilal Oswal Financial Services.
SPDR Gold Shares is the world’s largest commodity-backed exchange-traded fund.
Silver futures also witnessed robust traction on Monday. The white metal for December delivery jumped ₹1,956, or 1.34 per cent, to a fresh peak of ₹1,47,700 per kilogram. The March 2026 contract for silver futures rallied ₹2,053, or 1.39 per cent, to ₹1,49,321 per kg.
Silver futures also witnessed a strong rally last week. It had bounced by ₹3,855 per kg or 2.72 per cent.
Analysts said the budget impasse in Washington, which has stalled key federal programmes and delayed the release of critical economic data, has intensified risk aversion and driven investors towards precious metals.
“Gold prices hit record highs, driven by strong demand amid the ongoing US government shutdown, which has delayed the release of key economic data. Despite a nearly 50 per cent rally in 2025 so far, investors continue to favour gold as uncertainty lingers,” said Aksha Kamboj, Vice President – India Bullion and Jewellers Association and Executive Chairperson – Aspect Global Ventures.
On the global front, Comex gold futures for December delivery surged 1.2 per cent to a record $3,957.90 per ounce, while silver futures advanced over 1 per cent to $48.47 per ounce, their highest since April 2011.
“Silver climbed above $48.3 per ounce as the ongoing US government shutdown and expectations of further Federal Reserve rate cuts boosted demand for safe-haven assets. Lawmakers once again failed to secure a funding deal, delaying key major data releases, including September’s jobs report,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Trivedi added that market participants are now almost fully pricing in a quarter-point Fed rate cut this month and another in December. Investors will closely track remarks from Fed Governor Stephen Miran on Wednesday, the release of Federal Open Market Committee (FOMC) minutes, and Chair Jerome Powell’s speech on Thursday for further policy signals.
“Beyond macro factors, silver drew support from tightening supply conditions, with the Silver Institute projecting a global market deficit for a fifth consecutive year in 2025,” he said.