Gold Hits Record Rs 1,20,900 Amid US Shutdown, Fed Rate Cut Bets
New Delhi: Gold prices surged by Rs 651 on Tuesday, reaching a fresh peak of Rs 1,20,900 per 10 grams in the domestic futures market, driven by strong global cues amid the prolonged US government shutdown and rising expectations of Federal Reserve rate cuts.
On the Multi Commodity Exchange (MCX), December gold futures climbed Rs 651, or 0.54%, to a record high of Rs 1,20,900 per 10 grams. The February 2026 contract rose Rs 648, or 0.53%, hitting a lifetime high of Rs 1,22,231 per 10 grams.
“Gold prices touched an all-time high due to US economic and political uncertainties, along with expectations of further interest rate cuts by the Federal Reserve,” said Manav Modi, Analyst – Precious Metal Research at Motilal Oswal Financial Services.
Silver futures also gained, rising Rs 281, or 0.19%, to trade near their record high of Rs 1,47,800 per kilogram. The March 2026 contract advanced Rs 327, or 0.21%, to Rs 1,49,500 per kg, after hitting a lifetime high of Rs 1,49,605 per kg in the previous session.
Globally, Comex December gold futures crossed the USD 4,000 per ounce mark for the first time, climbing nearly 1% on Tuesday, while December silver futures slipped slightly to USD 48.43 per ounce.
Analysts noted that the US government shutdown has disrupted key federal programs and delayed the release of important economic data, including the September jobs report. The absence of official macroeconomic indicators, combined with rising expectations of two Federal Reserve rate cuts this year, has boosted demand for gold.
“Continued buying by global central banks is also fueling the record rally in precious metals,” an expert said. Data from the World Gold Council showed central bank gold purchases rebounded in August, adding 15 tonnes to global reserves.
China’s central bank, the People’s Bank of China, increased its gold holdings to 74.06 million fine troy ounces at the end of September, up from 74.02 million in the previous month, marking the 11th consecutive month of bullion accumulation.
Manav Modi added that traders will closely monitor comments from Federal Reserve officials for further monetary policy cues. “Focus this week will also be on the FOMC meeting minutes and Fed Chair Jerome Powell’s speech on Thursday for insights on the US economy and interest rate trajectory,” he said.
