Mumbai (Rajeev Sharma): Gold prices hit an unprecedented high in futures trade on Tuesday, climbing to Rs 1,20,900 per 10 grams on the Multi Commodity Exchange (MCX), as rising global uncertainty and renewed safe-haven interest drove investor sentiment.
The rally in gold was spurred by a combination of domestic speculative buying and international developments that have rattled financial markets. Market participants attributed the surge to strong demand in the spot market, fears of a prolonged U.S. government shutdown, and growing expectations that the U.S. Federal Reserve may shift towards a more accommodative monetary stance amid economic concerns.
December 2025 gold futures rose by Rs 651, or 0.54%, while contracts for February 2026 saw a similar increase of Rs 648, pushing the price to Rs 1,22,231 per 10 grams — also a record level. Analysts pointed to a sharp uptick in positions taken by traders in anticipation of further gains.
Silver futures followed suit, registering modest gains. The December silver contract edged up by Rs 281 to Rs 147,800 per kilogram, while the March 2026 contract gained Rs 327 to reach Rs 149,500 per kilogram. Monday’s session had already seen silver touch an all-time high of Rs 147,977, signaling strong interest in the white metal as well.
Internationally, gold continued its upward momentum. December futures breached the $4,000 per ounce mark for the first time, driven by investor flight to safety amid geopolitical tensions and economic gridlock in Washington. However, silver prices abroad eased slightly to $48.43 per ounce.
A key factor fueling the rally is the ongoing political impasse in the United States, where a funding deadlock has led to a partial government shutdown. Analysts say such political instability, combined with fears of slower growth and potential rate cuts, is creating the perfect environment for precious metals to thrive.
With global risk appetite under pressure and the festive season approaching in India — traditionally a strong period for gold demand — market observers expect the bullish trend to continue in the near term. Traders are watching closely for any signs of intervention or major policy shifts that could influence the trajectory of gold and silver prices.
