Gold prices hit a fresh record on the Multi Commodity Exchange on Tuesday, with December futures touching Rs 1,17,788 per 10 grams before profit booking pulled them lower.

Silver also set a new high of Rs 1,44,330 per kg on the MCX, as precious metals extended their strongest monthly run in 14 years.

Analysts said safe-haven demand rose on fears of a possible United States government shutdown and growing expectations of another Federal Reserve rate cut.

A weaker dollar and persistent central bank buying have also supported the rally through September.

After the record highs, traders booked profits and prices eased off the top. Gold was last quoted around Rs 1,16,500 per 10 grams in late trade. Analysts advised investors to avoid chasing the rally and to buy on dips, warning that prices could stay volatile around upcoming US economic data. Domestic jewellers said retail demand remains steady ahead of the festive and wedding season despite the high prices.