Gold Hits Record High as US Shutdown Fuels Safe-Haven Demand
Gold prices hit a record high on Tuesday as the US government shutdown and hopes of a Federal Reserve rate cut drove investors toward safe-haven assets. MCX gold touched Rs 1,20,900 per 10 grams in morning trade before easing to Rs 1,20,286.
In international markets, spot gold rose to $3,977.19 an ounce. Silver also surged, with MCX silver touching Rs 1,47,800 per kg. In Mumbai’s physical market, 24-karat gold was quoted at Rs 1,49,670 per 10 grams, according to the All India Bullion Association.
Analysts say uncertainty around US fiscal policy and expectations of easier monetary policy are supporting bullion. A weaker dollar has added to the momentum.
The rally extends gold’s strong 2026 run. With the festive and wedding season underway in India, jewellers are watching whether high prices dampen demand or whether buyers continue to see gold as a hedge.
Jewellers say the wedding season usually supports demand even at high prices, as families buy gold for ceremonies. Investment demand through gold ETFs has also stayed firm through the rally.
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