Gold prices on Tuesday witnessed an unprecedented surge, hitting a record high of Rs 1,17,561 per 10 grams in the domestic futures market. This jump of Rs 1,217 reflects the growing safe-haven demand amid fears of a looming US government shutdown and anticipated interest rate cuts by the Federal Reserve. The increase marks the fourth consecutive session of gains for the yellow metal.
The Multi Commodity Exchange (MCX) reported that gold futures for December delivery rallied by 1.04 per cent. Similarly, gold futures for February 2026 rose Rs 1,314 or 1.12 per cent, reaching a high of Rs 1,18,788 per 10 grams.
Silver followed suit, touching record levels as well. The December futures for silver soared by Rs 1,101 or 0.77 per cent to reach Rs 1,44,200 per kilogram, while the March 2026 contract also climbed to a new peak, appreciating by Rs 1,127 or 0.78 per cent.
According to Rahul Kalantri, Vice-President of Commodities at Mehta Equities Ltd, “Gold and silver extended their bullish momentum as safe-haven demand surged amid concerns over a potential US government shutdown.” Increased fears over additional tariff measures and expectations of further cuts from the Federal Reserve drive the prices higher.
In global markets, bullion also registered historic highs. Gold futures for December delivery surged by more than 1 per cent, reaching USD 3,895.22 per ounce, while silver edged up to USD 47.41 per ounce. The ascent reflects the global trend of investors flocking to safe-haven assets.
Senior Research Analyst Jigar Trivedi from Reliance Securities stated, “Gold prices rose to a fresh record high of USD 3,895 per ounce, marking their largest monthly gain in 14 years.” This surge occurs as fears mount over a government shutdown threatening to disrupt economic data releases.
The Federal Reserve’s strategies are pivotal, with calendars this month showing crucial macroeconomic data reinforcing expectations that the Fed could implement more rate cuts following upcoming meetings.
The uncertainty surrounding US fiscal policies looms large as negotiations continue without resolution. Recent talks between President Donald Trump and congressional leaders ended without an agreement on short-term funding, raising concerns over a potential government shutdown.
Trivedi further elaborated, “If no agreement is reached, a shutdown would commence on Wednesday, which could delay the release of important economic indicators.”
Compounding market concerns, new tariffs on heavy trucks, patented drugs, and various other items are set to take effect on Wednesday. This further contributes to instability and increases the allure of precious metals.
In September, gold exchange-traded funds attracted USD 10.5 billion, lifting total inflows for 2023 to approximately USD 50 billion. Renisha Chainani, Head of Research at Augmont, noted that “investors are flocking to safe-haven assets amid global economic and political uncertainty.” This surge highlights the growing apprehensions surrounding current global dynamics.
As gold prices continue to reach new heights, Nigerian economic satisfaction amid worldwide circumstances emphasizes the continued preference for gold in uncertain times. The current trend offers both challenges and opportunities for investors navigating through a highly volatile market.