Kolkata’s gold market glittered on Monday as prices hit unprecedented highs, reflecting the global rally in precious metals. Strong safe-haven demand, softening US data, and optimism over interest rate cuts by the Federal Reserve pushed gold prices to fresh records.
In Kolkata, 22-karat gold was priced at Rs 11,070 per gram, while 24-karat (999 gold) stood at Rs 12,077 per gram, with buyers showing renewed interest despite the price surge.
Gold Futures Rally as Domestic Prices Cross Rs 1.20 Lakh
On the domestic front, MCX gold futures for December delivery spiked Rs 1,962, or 1.66 per cent, to reach a record Rs 1,20,075 per 10 grams. The February 2026 contract extended its rally for a seventh consecutive session, adding Rs 2,017, or 1.69 per cent, to a new high of Rs 1,21,350 per 10 grams.
The momentum followed a strong week for bullion, with gold futures having gained Rs 3,222 per 10 grams, a 2.8 per cent rise. Analysts said the ongoing US government shutdown, combined with geopolitical tensions and weaker macro indicators, has strengthened gold’s position as a defensive asset.
“Physical demand for gold remained mixed, with softness in China offset by steady buying in other Asian markets, anticipating further price gains,” said Manav Modi, Analyst at Motilal Oswal Financial Services. He noted that holdings in SPDR Gold Shares, the largest gold-backed exchange-traded fund globally, increased notably, underscoring renewed institutional interest.
Silver Joins the Rally; Global Trends Support Bullion
Silver prices also surged sharply. On the MCX, December silver contracts rose Rs 2,233, or 1.53 per cent, to Rs 1,47,977 per kg, while the March 2026 contract gained Rs 2,337, or 1.59 per cent, touching Rs 1,49,605 per kg.
Globally, Comex gold futures climbed nearly 2 per cent to $3,973.60 per ounce, while silver reached $48.58 per ounce, its highest level since 2011. Analysts pointed to the budget gridlock in Washington as a key driver of investor caution.
“Lawmakers once again failed to secure a funding deal, delaying key major data releases, including September’s jobs report,” said Jigar Trivedi, Senior Analyst at Reliance Securities. “Market participants are now almost fully pricing in a quarter-point Fed rate cut this month and another in December,” he added.
With the Silver Institute projecting a continued global supply deficit for 2025, and Axis Securities noting strong buying momentum, analysts believe the white metal could soon test the $50 per ounce threshold, signalling persistent investor optimism across the bullion space.
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