Gold prices in India jumped to record highs on Tuesday, extending their rally for a third consecutive session, supported by rising global uncertainty and mounting expectations of more interest rate cuts by the US Federal Reserve. On the MCX, December gold futures reached an unprecedented Rs 1,20,769 per 10 grams, setting a new benchmark for the yellow metal.
By 9:15 am, gold was trading 0.43 per cent higher, while MCX silver December futures inched up 0.12 per cent to Rs 1,47,701 per kg.
The precious metal also advanced in the international market, as traders sought refuge amid a worsening US government shutdown. The political impasse, now stretching into its seventh day, has halted nearly $1.7 trillion in government funding, triggering concerns of stalled economic activity and looming layoffs.
Safe-Haven Rally Underpins Record Surge
“Gold prices rose to an all-time high, extending gains to a third session on US economic and political uncertainties and expectations of further interest rate cuts by the Federal Reserve,” analysts observed.
Investors are awaiting key events this week, including the FOMC minutes, Fed Chair’s address, the reopening of Chinese markets, and further developments related to US fiscal negotiations.
According to experts, these factors, coupled with a weaker US dollar, have driven strong safe-haven buying, boosting gold’s appeal.
White House officials have since clarified that no federal workers have yet been laid off, though they acknowledged that prolonged budget deadlock could have damaging consequences for employment.
Kolkata Sees Record Retail Prices
In Kolkata, gold prices followed the national trend, reaching new peaks. The rate for 22-karat gold stood at Rs 11,185 per gram, while 24-karat (999) gold was priced at Rs 12,202 per gram.
India remains the world’s second-largest gold consumer after China, relying heavily on imports. Domestic prices tend to stay above global averages due to import duties, GST, and other local taxes.
With economic and geopolitical risks mounting, the record surge underscores gold’s status as a trusted store of value. For buyers and investors in Kolkata, the metal continues to serve both as a safe-haven asset and as a crucial tool for preserving long-term wealth.
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