NEW DELHI, Oct 8: Gold prices surged for the third consecutive day, hitting an all-time high of ₹1,26,600 per 10 grams in Delhi on Wednesday, driven by global geopolitical tensions and the ongoing U.S. government shutdown. The yellow metal has gained ₹6,000 in three days, reflecting strong investor demand for safe-haven assets. Globally, spot gold crossed the $4,000 mark for the first time, reaching $4,049.59 per ounce.
Analysts attribute the rally to heightened geopolitical risks, expectations of U.S. Federal Reserve rate cuts, and increased purchases by central banks and high-net-worth individuals. Gold exchange-traded funds (ETFs) have also seen strong inflows, with India recording a 285% rise in ETF investments in September.
Domestically, gold of 99.5% purity rose ₹2,600 from the previous session. Futures on the Multi Commodity Exchange (MCX) also hit record highs, with December contracts touching ₹1,23,080 per 10 grams and February 2026 contracts reaching ₹1,24,324.
Silver prices too surged, nearing their record at ₹1,57,000/kg in the local market. Futures on the MCX soared to ₹1,50,675/kg, reflecting a 70% rise year-to-date. Globally, silver hit $49.07 per ounce.
Since December 31, 2024, gold and silver prices have risen over 60% and 70%, respectively, amid rising market volatility, inflation concerns, and safe-haven demand. Analysts warn that these sharp gains signal deep structural uncertainty and advise cautious asset allocation going forward.
The market now awaits signals from the US Fed, with FOMC meeting minutes and officials’ statements expected to influence future trends. (PTI)
