Gold and silver hit record highs on Tuesday as investors sought safe-haven assets amid concerns over a potential US government shutdown and expectations of further interest rate cuts by the Federal Reserve. The US government shutdown risk intensified after talks between President Donald Trump and congressional leaders failed to reach an agreement on short-term funding.
Gold rallies
In India’s domestic futures market, December gold futures on the Multi Commodity Exchange (MCX) climbed Rs 1,217, or 1.04%, to reach Rs 1,17,561 per 10 grams. Meanwhile, February 2026 contracts surged Rs 1,314, hitting a lifetime high of Rs 1,18,788 per 10 grams.
Silver follows
Silver followed a similar trend touching a new high on the MCX with December futures rising Rs 1,101, or 0.77%, to Rs 1,44,200 per kilogram. March 2026 silver contracts gained Rs 1,127, or 0.78% reaching Rs 1,45,858 per kilogram.Global markets mirrored the trend, hitting lifetime highs. December gold futures rose over 1% to $3,895.22 per ounce, while silver touched $47.41 per ounce.“Gold and silver extended their bullish momentum as safe-haven demand surged amid concerns over a potential US government shutdown, and additional tariff measures, coupled with expectations of further Fed rate cuts, are driving precious metal prices higher,” Rahul Kalantri, vice-president of commodities at Mehta Equities Ltd told PTI.“Gold prices rose to a fresh record high of $3,895 per ounce, heading for their biggest monthly gain in 14 years, as investors rushed to safe-haven assets amid mounting concerns over a looming US government shutdown,” said Jigar Trivedi, senior research analyst at Reliance Securities. Precious metal futures have gained over 11% in September.“If no agreement is reached, a shutdown would begin on Wednesday, potentially delaying the release of key economic data, including the September nonfarm payrolls report,” Trivedi added.Market jitters were further fuelled by new US tariffs on heavy trucks, patented drugs, and other goods, set to take effect on Wednesday. “Last week, the US macroeconomic data reinforced bets that the Federal Reserve could deliver additional rate cuts at its two remaining meetings this year,” he said.Meanwhile, investors continued flocking to gold ETFs. “Gold exchange-traded funds attracted $10.5 billion in September, lifting total inflows this year to about $50 billion, as investors piled into the safe-haven asset amid global economic and political uncertainty,” said Renisha Chainani, head of research at Augmont.
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