Gold Prices Soar to Record High Amid U.S. Economic Uncertainty

Gold prices have surged to a record high in domestic futures trade, exceeding Rs 1.20 lakh per 10 grams for the first time. This rise is attributed to strong global trends and growing acceptance of more interest rate cuts by the U.S. Federal Reserve.

The ongoing U.S. government shutdown, along with increasing trade and geopolitical tensions, has bolstered demand for gold, a traditional safe-haven asset. On the Multi Commodity Exchange, gold futures for December delivery appreciated by Rs 1,962, reaching an all-time high of Rs 1,20,075 per 10 grams, while the February 2026 contract extended the rally for the seventh session.

Silver also experienced significant gains, with futures increasing by over Rs 2,233 to hit a lifetime high on Monday. Analysts suggest that the budget impasse in Washington and supply constraints have contributed to investor preference for precious metals, with further developments expected from the upcoming Federal Reserve meetings and data releases.