Gold Futures Smash Records: Surge Driven by US Shutdown Chaos and Fed Rate Cut Bets
Safe-Haven Rush: Gold Hits ₹1,19,560 per 10 gm on MCX as Global Uncertainties Fuel Investor Frenzy
New Delhi, October 6, 2025 – Gold prices catapulted to unprecedented heights in the domestic futures market on Monday, climbing ₹1,447 to touch a lifetime peak of ₹1,19,560 per 10 grams. The rally, fueled by safe-haven buying amid the ongoing U.S. government shutdown and mounting expectations of additional Federal Reserve interest rate cuts, underscores investors’ flight to precious metals in turbulent times.
On the Multi Commodity Exchange (MCX), the December delivery gold futures contract appreciated by ₹1,447, or 1.22%, reaching ₹1,19,560 per 10 grams. The February 2026 contract wasn’t far behind, advancing ₹1,512, or 1.27%, to ₹1,20,845 per 10 grams. This follows a robust weekly performance where gold futures gained ₹3,222 per 10 grams, or 2.8%.
Silver prices mirrored the upward momentum, with the December delivery contract on MCX rising ₹1,956, or 1.34%, to ₹1,47,700 per kilogram. The March 2026 contract surged ₹2,053, or 1.39%, to ₹1,49,321 per kilogram, building on last week’s increase of ₹3,855 per kilogram, or 2.72%.
The U.S. government shutdown, triggered by a budget impasse in Washington, has halted federal operations and postponed key economic data releases, heightening market volatility and risk aversion. Analysts point to this uncertainty, combined with bets on Fed rate reductions—a quarter-point cut this month and another in December—as primary drivers for the precious metals boom.
“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 for Precious Metal Research at Motilal Oswal Financial Services. He noted rising investor interest in SPDR Gold Shares, the world’s largest commodity-backed ETF.
Aksha Kamboj, Vice-President of the India Bullion and Jewellers Association and Executive Chairperson of Aspect Global Ventures, highlighted gold’s resilience: “Despite a nearly 50% rally in 2025 so far, investors continue to favour gold as uncertainties linger.”
Globally, Comex gold futures for December delivery jumped 1.2% to a record $3,957.90 per ounce, while silver futures climbed over 1% to $48.47 per ounce—the highest since April 2011. Jigar Trivedi, Senior Research Analyst at Reliance Securities, attributed silver’s gains to the shutdown’s data delays and tightening supply, with the Silver Institute forecasting a global market deficit for the fifth straight year in 2025.
Market watchers are now eyeing upcoming Fed events, including remarks from Governor Stephen Miran on October 8, FOMC minutes, and Chair Jerome Powell’s speech on October 9, for further clues on monetary policy.
This surge reflects broader economic anxieties, with precious metals serving as a bulwark against geopolitical and financial instability. As the U.S. shutdown drags on, experts warn of potential ripple effects on global markets, keeping the spotlight firmly on gold and silver.
