Gold prices witnessed a remarkable surge on Tuesday, rising by Rs 1,217 to reach an unprecedented high of Rs 1,17,561 per 10 grams in the domestic futures market. Investors reacted to the looming threat of a US government shutdown and the expectation of further interest rate cuts by the Federal Reserve.
On the Multi Commodity Exchange (MCX), the December gold futures extended their gains for the fourth consecutive session, rallying 1.04 percent. The February 2026 contract for gold futures saw an even more impressive increase, jumping Rs 1,314 or 1.12 percent to hit a lifetime high of Rs 1,18,788 per 10 grams.
Meanwhile, silver also reached unprecedented levels, with December futures climbing Rs 1,101 or 0.77 percent to mark a record high of Rs 1,44,200 per kilogram. The March 2026 contract for silver futures rose by Rs 1,127 or 0.78 percent, peaking at Rs 1,45,858 per kg on the commodities bourse.
“Gold and silver are enjoying a bullish trend as safe-haven demand increases amid the uncertainty surrounding a potential US government shutdown,” stated Rahul Kalantri, Vice-President of Commodities at Mehta Equities Ltd. He further noted that the fear of additional tariffs and anticipated rate cuts from the Federal Reserve continue to elevate precious metal prices.
In the global market, bullion prices mirrored this upward trend, with gold futures rising above 1 percent to reach USD 3,895.22 per ounce. Silver saw a modest increase, reaching USD 47.41 per ounce.
“Gold prices surged to a fresh record high of USD 3,895 per ounce, positioning for the largest monthly gain in 14 years as investors flock to safe-haven assets amid fears of a US government shutdown,” remarked Jigar Trivedi, Senior Research Analyst at Reliance Securities. He highlighted that, so far in September, precious metal futures have appreciated by over 11 percent.
Negotiations between President Donald Trump and US congressional leaders concluded without a funding deal on Monday, escalating the risk of a government shutdown when the current funding expires at midnight on Tuesday.
“If no agreement is reached, the shutdown could commence on Wednesday, potentially delaying significant economic reports, including the September nonfarm payrolls data,” Trivedi warned.
Additionally, anxiety in the market grew as new US tariffs on heavy trucks and patented drugs, among other items, are set to take effect Wednesday.
“Recent US macroeconomic data further underlines the likelihood of the Federal Reserve delivering more rate cuts in its remaining meetings this year,” he noted.
Gold exchange-traded funds (ETFs) attracted USD 10.5 billion in September alone, pushing total inflows for the year to approximately USD 50 billion. This underscores the rush among investors toward safe-haven assets amid escalating global economic and political uncertainties, as discussed by Renisha Chainani, Head of Research at Augmont.
