Gold futures in India surged to record levels on Wednesday, driven by a combination of global market trends and heightened investor demand for safe-haven assets following the U.S. government shutdown.
Domestic December gold contracts on the Multi Commodity Exchange (MCX) rose ₹535, or 0.45%, to reach an unprecedented ₹1,17,800 per 10 grams.
February futures extended gains for a fifth consecutive session, climbing ₹617, or 0.52%, to a lifetime high of ₹1,19,055 per 10 grams.
Silver futures also posted notable gains. The December contract jumped ₹2,699, or 1.89%, to a fresh peak of ₹1,44,844 per kilogram, while the March 2026 contract surged ₹3,980, or 2.77%, touching a record ₹1,47,784 per kilogram.
Analysts pointed to the shutdown in Washington, coupled with weak U.S. labour data, as the primary triggers for the sharp rally in precious metals.
According to experts in the Indian commodities market, the government closure has intensified concerns over delays in key economic indicators, including the upcoming nonfarm payrolls report.
This uncertainty has strengthened expectations that the U.S. Federal Reserve may cut interest rates in its forthcoming policy meetings, further supporting bullion prices.
Global markets mirrored the domestic trend, with Comex December gold futures crossing the $3,900 per ounce mark for the first time, reaching $3,903.45. Silver prices also climbed, hitting a peak of $47.81 per ounce for December contracts.
Market observers noted that the dollar index, which measures the strength of the greenback against a basket of six major currencies, remained subdued at 97.62, down 0.16%. A weaker dollar makes gold and silver relatively cheaper for investors using other currencies, reinforcing demand.
Traders and analysts emphasized that the duration of the U.S. government shutdown will be a key factor influencing the bullion market in the near term.
They also highlighted that market participants are increasingly pricing in the likelihood of a Fed rate reduction, with some projecting additional cuts later this year.
The latest gains in precious metals reflect a combination of geopolitical uncertainty, expectations of monetary easing in the United States, and robust demand for hedging instruments amid global economic volatility.
With both domestic and international markets reacting sharply to U.S. developments, gold and silver have emerged as preferred investment options for risk-averse investors seeking stability.
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