Gold rates in Delhi soar to fresh peak of ₹1.24 lakh/10 g, Goldman Sachs raises Dec 2026 target to $4,900/oz

Gold prices on Tuesday, October 7, soared ₹700 to an all-time high of ₹1,24,000 per 10 gram in Delhi, as the safe-haven demand of the precious metal witnessed a major uptick due to the ongoing US government shutdown and increased expectations of US Federal Reserve rate cuts. 

As per data from the All India Sarafa Association, the yellow metal of 99.9% purity (24K) ended at ₹1,23,300 per 10 gram on Monday. 

Gold of 99.5% purity (24K) also jumped ₹700 to a lifetime peak of ₹1,23,400 per 10 gram on Tuesday after settling at ₹1,22,700 per 10 gram in the previous session.

Silver, which was at a peak of ₹1,57,400 per kg yesterday, declined by ₹3,400 to ₹1,54,400 per kg on Tuesday. 

Globally, spot gold was trading lower at $3,958.18 per ounce after hitting an all-time high of $3,977.45 per ounce on Monday. Spot silver was trading 0.1% lower at $48.46 per ounce.

Gold futures

Gold futures on Tuesday surged by 0.54% to a fresh lifetime high of ₹1,20,900 per 10 gram on the Multi-Commodity Exchange (MCX). The contracts for the December delivery soared ₹651 or 0.54% to its second consecutive record high of ₹1,20,900 per 10 gram.

The yellow metal contracts for February expiry, extending their gains for the eighth consecutive session, rose ₹648, or 0.53% to a fresh peak of ₹1,22,231 per 10 gram on the MCX. 

Silver futures for the December delivery were trading near their all-time high of ₹1,47,977 per kg hit on Monday. During the session on Tuesday, Silver December contracts hit an intraday high of ₹1,47,800 per kg. 

Why is gold rising?

The US government shutdown has reached its seventh day, and still, no resolution seems in sight. As per market analysts, the ongoing US government shutdown has delayed the release of crucial economic data, including the September jobs report.

The delay in official US macroeconomic indicators, along with the rising expectations of two Federal Reserve rate cuts this year, is boosting bullion prices. "Additionally, sustained gold buying by global central banks also continues to power the record rally in the precious metal prices," a PTI report quoted a market expert as saying.

On top of geopolitical tensions, market volatility, weak currencies and central bank gold buying, the upcoming festive season in India is expected to provide another boost to the precious metal in October.

Gold outlook

Goldman Sachs has raised its December 2026 gold target to $4,900 per ounce from $4,300 per ounce, citing strong Western ETF inflows and expected central bank buying. As per a report by Bloomberg, Goldman Sachs expects central bank buying to average 80 metric tons in 2025 and 70 tons in 2026. 

The global brokerage says that the emerging market central banks are likely to continue the structural diversification of their reserves into gold, resulting in increased central bank buying. 

After softening for a little while, central bank gold buying has bounced back, rising by 15 tonnes during the month of August, as per the data by the World Gold Council. 

China’s gold holdings totalled 74.06 million fine troy ounces as of September end, according to data from the People's Bank of China (PBOC), up from 74.02 million in the previous month. The country’s central bank expanded bullion purchases for the 11th straight month.

Gold buying by central banks around the world has been keeping the demand and prices up for the yellow metal, intensifying its rally.