Gold futures soared by ₹535 to a record high of ₹1,17,800 per 10 grams in domestic futures trading on Wednesday, driven by strong global demand for safe-haven assets following the US government shutdown and weaker labor data that bolstered expectations for interest rate cuts by the US Federal Reserve.
On the Multi Commodity Exchange (MCX), gold futures for December delivery rose by ₹535, or 0.45%, hitting the milestone of ₹1,17,800 per 10 grams. The February contract continued its upward trend for the fifth consecutive session, increasing by ₹617, or 0.52%, to reach a lifetime high of ₹1,19,055 per 10 grams.
Silver futures also experienced significant gains. The December contract surged by ₹2,699, or 1.89%, reaching a new peak of ₹1,44,844 per kilogram, while the March 2026 contract climbed by ₹3,980, or 2.77%, achieving a record high of ₹1,47,784 per kilogram.
Market analysts attributed these substantial increases to heightened demand for safe-haven assets after the U.S. Senate failed to pass a spending bill, resulting in the first government shutdown since 2018. This closure has raised concerns regarding delays in essential economic data, including the crucial non-farm payrolls report due later this week.
“Gold hit a record high as investors turned to safe-haven assets on growing risks following the U.S. government shutdown, while weak labor data strengthened expectations for further interest rate cuts by the Federal Reserve,” stated Manav Modi, Precious Metal Analyst at Motilal Oswal Financial Services.
On the global market, Comex gold for December delivery increased nearly 1%, breaching the USD 3,900 per ounce mark for the first time, reaching a high of USD 3,903.45 per ounce. Silver futures for December also saw gains, hitting a maximum of USD 47.81 per ounce.
Jigar Trivedi, Senior Research Analyst at Reliance Securities, noted that traders are closely monitoring the duration of the shutdown and the Fed’s policy direction. “Traders are pricing in a near certainty of a rate reduction at the next meeting, with approximately a 76% probability of an additional cut in December,” Trivedi remarked.
Additionally, the dollar index, which reflects the strength of the dollar against a basket of six currencies, was trading at 97.62, down by 0.16%. The weaker dollar has been beneficial for bullion prices, as a subdued dollar makes gold more affordable for holders of other currencies.
The article was published on October 1, 2025.
