New Delhi, Oct 7: Gold prices surged to a new all-time high in India on Tuesday as investors flocked to safe-haven assets amid mounting global economic and political uncertainties. On the Multi Commodity Exchange (MCX), gold futures for December delivery soared by ₹651, or 0.54%, to touch a record ₹1,20,900 per 10 grams, while the February 2026 contract rose by ₹648, or 0.53%, to hit ₹1,22,231 per 10 grams — the highest level ever recorded.
Analysts attributed the rally to heightened safe-haven demand driven by a prolonged US government shutdown, rising expectations of Federal Reserve interest rate cuts, and growing central bank gold purchases. “Gold prices rose to an all-time high on the back of US economic and political uncertainties and anticipation of further rate cuts by the Federal Reserve,” said Manav Modi, Analyst – Precious Metal Research at Motilal Oswal Financial Services.
The rally wasn’t confined to gold alone. Silver futures also gained ground, climbing ₹281, or 0.19%, to trade near ₹1,47,800 per kg, just shy of Monday’s peak of ₹1,47,977. The March 2026 silver contract advanced ₹327, or 0.21%, to ₹1,49,500 per kg, after touching a lifetime high of ₹1,49,605 in the previous session.
Global markets mirrored the bullish sentiment, with Comex gold futures for December delivery breaching the USD 4,000 per ounce mark for the first time ever, gaining nearly 1% in Tuesday’s trade. Silver, however, traded marginally lower at USD 48.43 per ounce.
Market experts noted that the ongoing US government shutdown — which has halted key federal operations and delayed critical economic releases, including the September jobs report — has increased uncertainty, pushing investors towards gold. The lack of fresh macroeconomic data, combined with speculation of two potential rate cuts by the Fed this year, has reinforced the metal’s appeal as a hedge against volatility.
Adding further momentum to the rally is strong central bank buying, which continues to underpin gold’s upward trajectory. According to the World Gold Council (WGC), global central bank gold reserves rose by 15 tonnes in August, marking a sharp rebound in official sector purchases. The People’s Bank of China (PBOC), in particular, increased its holdings for the 11th consecutive month, reaching 74.06 million fine troy ounces by the end of September.
“Central banks, particularly in emerging markets, are diversifying away from the US dollar and increasing their gold reserves, which is a key structural driver behind this sustained rally,” said a commodities expert.
Looking ahead, traders are expected to keep a close eye on comments from Federal Reserve officials and the release of the FOMC meeting minutes, as well as Fed Chair Jerome Powell’s speech scheduled for Thursday, which could provide crucial insights into the future trajectory of US monetary policy.
The historic surge in gold prices underscores the metal’s enduring appeal as a safe-haven asset during times of uncertainty, with geopolitical risks, monetary policy shifts, and central bank accumulation all contributing to the rally. Analysts believe that if the current macroeconomic headwinds persist, gold could continue its record-breaking run in the months ahead.