Gold prices in India extended their winning streak on Tuesday, touching record levels amid rising global volatility and speculation of additional rate cuts by the US Federal Reserve. On the Multi Commodity Exchange (MCX), December gold futures hit a lifetime high of Rs 1,20,769 per 10 grams, continuing their strong upward momentum.
At around 9:15 am, MCX gold was up 0.43 per cent, while silver contracts for December delivery climbed 0.12 per cent to Rs 1,47,701 per kg.
Globally, gold surged to fresh highs as investors sought safety from market turbulence. The prolonged US government shutdown, now in its seventh consecutive day, has frozen $1.7 trillion in federal spending, raising concerns about delayed salaries and potential layoffs.
Global Cues Boost Bullion Sentiment
Market experts said that the rally was largely driven by investors’ flight to safety, fuelled by political standoffs and expectations of monetary easing. “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 said.
Key global events are also keeping traders alert this week, the release of FOMC meeting minutes, Fed Chair’s speech, China’s market reopening, and ongoing developments around the US fiscal deadlock.
White House officials have softened earlier remarks from President Donald Trump suggesting that federal layoffs had already started, but conceded that job losses could follow if the shutdown persists much longer.
Lucknow Gold Prices Mirror Nationwide Rally
In Lucknow, gold buyers woke up to record-high rates. The price of 22-karat gold stood at Rs 11,200 per gram, while 24-karat (999) gold was selling at Rs 12,207 per gram.
India’s reliance on imported bullion continues to shape domestic price trends. Given that gold is traded globally in US dollars, fluctuations in the rupee’s exchange rate have a direct bearing on Indian rates. Import duties, GST, and state-level taxes further elevate local prices compared with global benchmarks.
As India navigates market uncertainty, investors in Lucknow, like elsewhere, are increasingly turning to gold for portfolio stability and inflation protection. Analysts expect continued volatility but note that the yellow metal remains a key safeguard against external shocks.
