New Delhi: Gold futures surged by Rs 535 on Wednesday, hitting a record Rs 1,17,800 per 10 grams in domestic trading. The rally was driven by strong global cues as investors flocked to safe-haven assets following the US government shutdown and weaker-than-expected US labour data, which raised expectations of rate cuts by the Federal Reserve.
On the Multi Commodity Exchange (MCX), December gold futures rose Rs 535, or 0.45%, to a record Rs 1,17,800 per 10 grams. February contracts extended gains for a fifth consecutive session, climbing Rs 617, or 0.52%, to a lifetime high of Rs 1,19,055 per 10 grams.
Silver futures also saw robust gains. The December contract jumped Rs 2,699, or 1.89%, to a fresh peak of Rs 1,44,844 per kilogram, while the March 2026 contract surged Rs 3,980, or 2.77%, to a record Rs 1,47,784 per kg.
Analysts attributed the sharp rise to increased demand for safe-haven assets after the US Senate failed to pass a spending bill, triggering the first government shutdown since 2018. The closure has raised concerns about delays in key economic data, including the crucial nonfarm payrolls report due later this week.
“Gold reached a record high as investors sought safe-haven assets amid risks following the US government shutdown, while weak labour data reinforced expectations of further Fed rate cuts,” said Manav Modi, Analyst – Precious Metals, Motilal Oswal Financial Services.
On the international front, Comex December gold rose nearly 1% to surpass USD 3,900 per ounce for the first time, peaking at USD 3,903.45 per ounce. December silver futures also rallied to USD 47.81 per ounce.
Jigar Trivedi, Senior Research Analyst at Reliance Securities, noted that traders are closely monitoring the shutdown’s duration and the Fed’s policy direction. “Markets are pricing in a near-certain chance of a rate cut at the next meeting, with roughly a 76% probability of an additional reduction in December,” he said.
Meanwhile, the dollar index, which tracks the greenback against six major currencies, slipped 0.16% to 97.62. A weaker dollar further supported bullion prices, making gold more attractive for holders of other currencies, Trivedi added.
