Record Gold Rally: Futures Hit Rs 1,20,900 on Global Economic Uncertainty

Gold prices on Tuesday jumped Rs 651 to hit a fresh peak of Rs 1,20,900 per 10 grams in the domestic futures market, buoyed by strong global cues amid the prolonged US government shutdown and growing bets of rate cuts by the Federal Reserve at its upcoming meeting. On the Multi Commodity Exchange (MCX), the yellow metal futures for December delivery appreciated by Rs 651, or 0.54 per cent, to hit a record high of Rs 1,20,900 per 10 grams.

The February 2026 contract for gold futures increased by Rs 648, or 0.53 per cent, to hit a lifetime high of Rs 1,22,231 per 10 grams. "Gold prices rose to an all-time high on US economic and political uncertainties and expectations of further interest rate cuts by the Federal Reserve," Manav Modi, Analyst – Precious Metal Research at Motilal Oswal Financial Services, said.

Meanwhile, silver futures gained Rs 281, or 0.19 per cent, to trade near their record high of Rs 1,47,800 per kilogram. The white metal had hit its peak of Rs 1,47,977 per kg on Monday. The March 2026 contract for silver futures advanced Rs 327, or 0.21 per cent, to Rs 1,49,500 per kg, after touching a lifetime high of Rs 1,49,605 per kilogram in the previous session.

Globally, Comex gold futures for December delivery breached the key USD 4,000 per ounce mark for the first time, by rising nearly 1 per cent on Tuesday. However, silver futures for December delivery were quoting marginally lower at USD 48.43 per ounce.

Analysts said the ongoing US government shutdown has disrupted key federal programmes and delayed the release of crucial economic data, including the September jobs report. The absence of official US macroeconomic indicators, coupled with rising expectations of two Federal Reserve rate cuts this year, has further strengthened demand for the yellow metal. "Additionally, sustained gold buying by global central banks also continues to power the record rally in the precious metal prices," an expert said.

The latest data from the World Gold Council (WGC) showed that central bank gold buying rebounded in August, with global reserves rising by 15 tonnes during the month. According to data from the People's Bank of China (PBOC), the country's gold holdings totalled 74.06 million fine troy ounces at the end of September, up from 74.02 million in the previous month, as the central bank expanded bullion purchases for the 11th straight month.

Manav Modi of Motilal Oswal Financial Services said traders will closely watch comments from several Federal Reserve officials later in the day for further cues on the monetary policy outlook. "Focus this week will also be on the Federal Open Market Committee (FOMC) meeting minutes and Fed Chair Jerome Powell's speech on Thursday for fresh insights on the US economy and the Fed's path forward on interest rates," he added.