New Delhi, Oct 1: Gold futures soared Rs 535 to a record Rs 1,17,800 per 10 grams on Wednesday in domestic trade, tracking strong global cues as investors flocked to safe haven assets following the US government shutdown and weak US labor data fueling expectations of Federal Reserve rate cuts.
On the Multi Commodity Exchange (MCX), December gold futures rose Rs 535, or 0.45%, to touch Rs 1,17,800 per 10 grams. The February 2026 contract extended gains for the fifth consecutive session, climbing Rs 617, or 0.52%, to a lifetime high of Rs 1,19,055 per 10 grams.
Silver futures also advanced sharply, with the December contract jumping Rs 2,699, or 1.89%, to Rs 1,44,844 per kilogram, while the March 2026 contract rose Rs 3,980, or 2.77%, to a record Rs 1,47,784 per kilogram.
Analysts attributed the rally to heightened 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 over delays in key economic data, including the upcoming nonfarm payrolls report.
“Gold hit record highs as investors sought safety amid US government shutdown risks, while weak labor data strengthened expectations of further Fed rate cuts,” said Manav Modi, Analyst at Motilal Oswal Financial Services.
Globally, Comex gold for December delivery rose nearly 1% to breach USD 3,900 per ounce for the first time, touching USD 3,903.45 per ounce. Silver futures for December delivery surged to USD 47.81 per ounce.
Jigar Trivedi, Senior Research Analyst at Reliance Securities, said traders are closely monitoring the duration of the shutdown and the Fed’s policy path. “Markets are pricing in a high probability of a rate reduction at the next Fed meeting, with around 76% chance of an additional cut in December,” he noted.
Meanwhile, the dollar index, measuring the US dollar against a basket of six currencies, was trading at 97.62, down 0.16%, providing additional support to bullion prices. “A weaker dollar makes gold cheaper for holders of other currencies, further boosting demand,” analysts added.