Gold futures soar to fresh peak of ₹1,17,800/10g on US govt shutdown, Fed cut hopes; Silver at lifetime high 

Gold futures on Wednesday, October 1, soared ₹535 to hit a lifetime high of ₹1,17,800 per 10 gram on the Multi Commodity Exchange (MCX). Contracts for the December delivery jumped over ₹1.17 lakh/10 gram in domestic futures trade, fueled by increased safe-haven demand due to firm global cues after the US government shut down.

The yellow metal is a safe-haven asset that thrives in geopolitical uncertainties and market fluctuations. Weak labour data, rising expectations of a rate cut by the US Federal Reserve in October, a weaker dollar, central bank gold buying, market volatility and trade war concerns have been aiding gold’s bull run in recent times. 

Gold futures for the February delivery hit a fresh peak of ₹1,17,800 per 10 gram on the MCX on Wednesday. 

Silver, which usually moves in the same direction as gold, also soared to record highs. The white metal futures for the December expiry surged ₹2,699 to reach ₹1,44,844 per kg, and the March 2026 contract soared ₹3,980 to a record high of ₹1,47,784 per kg.

Market analysts say that the sharp rise in the bullion is due 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 failure has raised concerns over delays in key economic data, including the crucial nonfarm payrolls report due later this week, a PTI report said on Wednesday. 

In the overseas markets, Comex gold for December delivery jumped almost 1% to surpass the $3,900 per ounce level for the first time, reaching an all-time high of $3,903.45 per ounce. Silver futures for the December expiry soared to a fresh peak of $47.81 per ounce. 

"Traders are pricing in a near-certain chance of a rate reduction at the next meeting, with around a 76 per cent probability of an additional cut in December," the PTI report quoted Jigar Trivedi, Senior Research Analyst at Reliance Securities, as saying.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 97.62, lower by 0.16%. A weaker dollar also fuelled bullion prices. 

"The dollar index, which tracks the greenback against six major currencies, hovered near a one-week low, making gold cheaper for holders of other currencies," Trivedi added.

Gold, silver prices in Delhi

Gold prices in Delhi were at a lifetime high of ₹1,20,000 per 10 gram on Tuesday, September 30, as per All India Sarafa Association data. Notably, gold was at ₹78,950 per 10 gram on December 31, 2024. This marks a 51.9% jump just in 2025.

Silver prices were also at a fresh peak of  ₹1,50,500 per kg on Tuesday. The white metal surged by ₹7,000 on Monday to ₹1,50,000 per kg. 

With the festive season just around the corner, bullion prices are expected to rise further in October.