Gold prices surged on Monday, climbing by ₹1,447 to reach a new record of ₹1,19,560 per 10 grams in domestic futures trading. This increase was driven by safe-haven buying amid an ongoing US government shutdown and increasing expectations of further rate cuts from the Federal Reserve.
On the Multi Commodity Exchange (MCX), gold futures for December delivery rose by ₹1,447, or 1.22 percent, achieving a lifetime high of ₹1,19,560 per 10 grams. Furthermore, extending gains for the seventh consecutive session, the February 2026 contract increased by ₹1,512, or 1.27 percent, reaching a record of ₹1,20,845 per 10 grams. Last week, gold futures had already surged by ₹3,222 per 10 grams, equivalent to 2.8 percent.
“Physical demand for gold remained mixed, with softness in China offset by steady buying in other Asian markets, anticipating further price gains. SPDR holdings reflected investor interest, rising notably over last week,” noted Manav Modi, Analyst at Motilal Oswal Financial Services. SPDR Gold Shares represents the largest commodity-backed exchange-traded fund globally.
Silver also observed strong momentum on Monday. December silver futures increased by ₹1,956, or 1.34 percent, to a fresh peak of ₹1,47,700 per kilogram, while the March 2026 contract for silver futures climbed by ₹2,053, or 1.39 percent, to ₹1,49,321 per kg. Last week, silver futures had also rallied, gaining ₹3,855 per kg or 2.72 percent.
Analysts indicate that the budget standoff in Washington, which has stalled key federal programs and postponed the release of essential economic data, has intensified risk aversion, steering investors toward precious metals.
“Gold prices reached record highs, propelled by robust demand amid the ongoing US government shutdown. This situation has delayed the release of crucial economic data. Despite a nearly 50 percent rally in 2025 so far, investors continue to favor gold as uncertainty prevails,” stated Aksha Kamboj, Vice President of the India Bullion and Jewellers Association.
On the international front, Comex gold futures for December delivery soared by 1.2 percent to a record $3,957.90 per ounce, while silver futures surpassed $48.47 per ounce, their highest since April 2011.
“Silver climbed above $48.3 per ounce, driven by the ongoing US government shutdown and expectations of additional Federal Reserve rate cuts bolstering demand for safe-haven assets,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities. He added that lawmakers have once again failed to secure a funding agreement, delaying significant data releases, including September’s jobs report.
Market participants are closely monitoring potential monetary policy shifts, with futures nearly fully pricing in a quarter-point Fed rate cut this month and another in December. Eyes are set on remarks from Fed Governor Stephen Miran on Wednesday, alongside the release of Federal Open Market Committee (FOMC) minutes and Chair Jerome Powell’s speech on Thursday for further insights into policy direction.
“Beyond macroeconomic factors, silver received support from tightening supply conditions, with the Silver Institute forecasting a global market deficit for a fifth consecutive year in 2025,” he added.
Published on October 6, 2025.
