New Delhi: Gold prices surged sharply on Tuesday, rising Rs 1,217 to a record Rs 1,17,561 per 10 grams in the domestic futures market, tracking strong gains in global markets. Investors sought refuge in precious metals amid fears of a potential US government shutdown and expectations of further interest rate cuts by the Federal Reserve.
On the Multi Commodity Exchange (MCX), December gold futures extended their rally for the fourth consecutive session, climbing Rs 1,217, or 1.04%, to a new high of Rs 1,17,561 per 10 grams. February 2026 gold contracts gained Rs 1,314, or 1.12%, reaching an all-time peak of Rs 1,18,788 per 10 grams.
Silver also hit fresh highs. December silver futures rose Rs 1,101, or 0.77%, to a record Rs 1,44,200 per kilogram, while March 2026 contracts climbed Rs 1,127, or 0.78%, to Rs 1,45,858 per kg.
“Gold and silver extended their bullish momentum as safe-haven demand surged amid concerns over a possible US government shutdown. Additional tariff measures and expectations of further Fed rate cuts are driving prices higher,” said Rahul Kalantri, Vice-President of Commodities at Mehta Equities Ltd.
Globally, bullion prices also reached new peaks. December gold futures rose over 1% to USD 3,895.22 per ounce, while silver inched up to USD 47.41 per ounce.
“Gold touched a fresh record high of USD 3,895 per ounce, marking its biggest monthly gain in 14 years, as investors flocked to safe-haven assets amid mounting US shutdown fears,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities. Precious metal futures have surged more than 11% so far in September.
Meanwhile, negotiations between President Donald Trump and US congressional leaders on Monday failed to secure a deal on short-term funding, raising the risk of a government shutdown once current funding expires at midnight Tuesday.
“If no agreement is reached, a shutdown could begin Wednesday, potentially delaying key economic data releases, including the September nonfarm payrolls report,” Trivedi noted.
Adding to market concerns, new US tariffs on heavy trucks, patented drugs, and other products are set to take effect on Wednesday. Last week’s US macroeconomic data also reinforced expectations that the Federal Reserve may deliver additional rate cuts at its remaining meetings this year.
“Gold exchange-traded funds attracted USD 10.5 billion in September, taking total inflows this year to around USD 50 billion, as investors sought safety amid global economic and political uncertainty,” said Renisha Chainani, Head of Research at Augmont.
