Gold Gains To Rs 1.24 Lakh/10g On Fed Rate Cut Hopes, Shutdown Relief

Gold prices climbed by Rs 328 to Rs 1,24,241 per 10 grams in futures trade on Wednesday mirroring gains in global markets amid renewed optimism that the US Federal Reserve may lower interest rates next month.

Analysts said that the expectations of a resolution to the prolonged US government shutdown also supported the safe haven asset.

On the Multi Commodity Exchange (MCX), gold futures for December delivery jumped Rs 328, or 0.26 per cent, to Rs 1,24,241 per 10 grams in a business turnover of 12,868 lots.

Similarly, the February 2026 contract also edged higher by Rs 171, or 0.14 per cent, to Rs 1,25,748 per 10 grams in 4,027 lots.

Silver followed suit, with December futures surging Rs 2,198, or 1.42 per cent, to Rs 1,56,885 per kilogram in 15,262 lots. The March 2026 contract climbed Rs 2,034, or 1.29 per cent, to Rs 1,59,389 per kg in 9,031 lots.

"Gold and silver continue to strengthen, as risk sentiment is supported by the possible end to the longest government shutdown in US history.

"The anticipation that the US government's reopening and the flow of economic data will boost chances for a Federal Reserve interest rate cut next month are further factors supporting it," Renisha Chainani, Head - Research at Augmont, said.

In the international market, Comex gold for December delivery was up 0.13 per cent at USD 4,121.80 an ounce, while silver gained 1.55 per cent to USD 51.53 per ounce.

"Gold prices edged above USD 4,121 per ounce on Wednesday, rising for the fourth straight session, supported by mounting expectations of an imminent Federal Reserve rate cut," Jigar Trivedi, Senior Research Analyst at Reliance Securities, said.

Trivedi noted that investors are also awaiting a wave of official macroeconomic data as the government moves to end its longest-ever shutdown. The restart, expected within days after the US Senate approved a temporary funding measure, could ease some economic uncertainty and reduce demand for safe-haven assets.

"Gold remains on track for its strongest annual performance since 1979," he said.

On Monday, Fed Governor Stephen Miran stated that a rate drop of 50 basis points would be suitable for December, pointing out that the unemployment rate is gradually rising while inflation is declining.