New Delhi: Gold prices breached the Rs 1.20 lakh per 10 grams mark for the first time in the domestic futures trade on Monday, rising by Rs 1,962 on strong global trends amid the growing acceptance for additional rate cuts by the US Federal Reserve.
Analysts said the ongoing US government shutdown and rising trade and geopolitical tensions are also boosting demand for the safe-haven asset. On the Multi Commodity Exchange (MCX), gold futures for December delivery appreciated by Rs 1,962, or 1.66 per cent, to hit a record high of Rs 1,20,075 per 10 grams.
Similarly, the February 2026 contract extended the rally to the seventh session, jumping by Rs 2,017, or 1.69 per cent, to hit a fresh peak of Rs 1,21,350 per 10 grams. Last week, the yellow metal futures had surged by Rs 3,222 per 10 grams or 2.8 per cent.
“Physical demand for gold remained mixed, with softness in China offset by steady buying in other Asian markets, anticipating further price gains. SPDR holdings reflected investor interest, rising notably over last week,” said Manav Modi, Analyst, Precious Metal Research at Motilal Oswal Financial Services.
SPDR Gold Shares is the world’s largest commodity-backed exchange-traded fund.
Silver futures also witnessed robust traction on Monday. The white metal prices soared by Rs 2,233, or 1.53 per cent, to hit a lifetime high of Rs 1,47,977 per kg on the MCX.
The March 2026 contract of silver zoomed by Rs 2,337, or 1.59 per cent, to hit a record peak of Rs 1,49,605 per kg.
Silver futures also witnessed a strong rally last week. It had bounced by Rs 3,855 per kg or 2.72 per cent.
Analysts said the budget impasse in Washington, which has stalled key federal programmes and delayed the release of critical economic data, has intensified risk aversion and driven investors towards precious metals.
Globally, bullion prices hit fresh peaks. Comex gold futures for December delivery climbed nearly 2 per cent to hit a new peak of USD 3,973.60 per ounce.
“Gold surges past the USD 3,900 per ounce mark on Monday, hitting a fresh record high amid the growing acceptance for additional interest rate cuts by the US Federal Reserve (Fed),” an expert said.
Comex silver futures advanced more than 1 per cent to hit a high of USD 48.58 per ounce, their highest since April 2011.
“Lawmakers once again failed to secure a funding deal, delaying key major data releases, including September’s jobs report,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Trivedi noted that market participants are now almost fully pricing in a quarter-point Fed rate cut this month and another in December.
“Investors will closely track remarks from Fed Governor Stephen Miran on Wednesday, the release of Federal Open Market Committee (FOMC) minutes, and Chair Jerome Powell’s speech on Thursday for further policy signals.
“Beyond macro factors, silver drew support from tightening supply conditions, with the Silver Institute projecting a global market deficit for a fifth consecutive year in 2025,” he added.
According to brokerage firm Axis Securities, Comex silver futures remained firm and are inching closer to the psychological barrier of USD 50 per ounce, reflecting strong investor interest across the bullion complex.
