Gold Prices Hit Record ₹1.22 Lakh/10g on Safe-Haven Demand, Dovish Fed Signals
New Delhi: Gold prices surged to an all-time high on Wednesday, climbing ₹1,109 to reach ₹1,22,220 per 10 grams in the domestic futures market, as investors sought refuge in safe-haven assets amid mounting global economic uncertainties and dovish cues from the US Federal Reserve.
On the Multi Commodity Exchange (MCX), gold futures for December delivery rose 0.91% to hit the record mark of ₹1,22,220 per 10 grams. Extending gains for the ninth consecutive session, the February 2026 contract also advanced ₹1,085, or 0.88%, to a lifetime high of ₹1,23,469 per 10 grams.
Silver mirrored gold’s rally, with December futures jumping ₹2,387 (1.63%) to an unprecedented ₹1,48,179 per kilogram. The March 2026 silver contract also touched a record ₹1,50,000 per kg, up ₹2,485 or 1.68%.
In global markets, Comex gold futures (December) climbed over 1% to a new peak of USD 4,051.55 per ounce, while silver gained nearly 2% to USD 48.61 per ounce.
Analysts attributed the rally to a combination of safe-haven buying, falling bond yields, and expectations of further US rate cuts.
“Gold surpassed USD 4,000 per ounce as investors sought safety amid economic uncertainties and a dovish Fed outlook,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
He noted that the ongoing US government shutdown, now in its second week, has delayed key economic data releases, complicating the assessment of economic health. “Traders are already pricing in 25-basis-point rate cuts by the Fed in both October and December,” Trivedi added.
Manav Modi, Analyst – Precious Metals at Motilal Oswal Financial Services, said political instability in France and leadership changes in Japan are further driving safe-haven demand.
Meanwhile, a new World Gold Council (WGC) report revealed that global gold-backed ETFs saw their largest-ever quarterly inflows in the three months ending September.
“Inflows into gold ETFs have reached USD 64 billion so far this year, including a record USD 17.3 billion in September alone,” the report stated.
Overall inflows rose 23% quarter-on-quarter to USD 26 billion, led by North American funds, followed by investors in Europe and Asia.
“Trade, policy, and geopolitical risks continue to persist with no signs of abating,” the WGC noted.
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