New Delhi, Oct 06: Gold prices skyrocketed by Rs 9,700 to scale a fresh peak of Rs 1,30,300 per 10 grams in the national capital on Monday, lifted by safe-haven buying in the overseas markets and depreciation in the Indian rupee.
According to the All India Sarafa Association, the yellow metal of 99.9 per cent purity had closed at Rs 1,20,600 per 10 grams on Friday.
In the local bullion market, gold of 99.5 per cent purity jumped by Rs 2,700 to hit a record high of Rs 1,22,700 per 10 grams (inclusive of all taxes) on Monday. It had settled at Rs 1,20,000 per 10 grams in the previous market session.
Traders said the fall in the rupee against the US dollar added to the rally of the precious metal.
“Gold reached a new record high on Monday as investors still prefer bullion despite this record high price. They are anticipating further gains in bullion backed by favourable fundamentals and strong bullish momentum,” Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said.
Gandhi noted that concerns about a prolonged US government shutdown potentially impacting economic performance are supporting the demand for safe-haven metal.
So far in this year, gold prices have added Rs 51,350 or 65.04 per cent, rallying from Rs 78,950 per 10 grams on December 31, 2024.
Silver prices also witnessed robust gains. The white metal bounced by Rs 7,400 to hit a new peak of Rs 1,57,400 per kilogram (inclusive of all taxes). It had ended at Rs 1,50,000 per kg on Friday, as per the association.
Silver prices have soared by Rs 67,700 or 75.47 per cent in the current calendar year, rallying from Rs 89,700 per kg on December 31, 2024.
In the international markets, spot gold rose nearly 2 per cent to touch an all-time high of USD 3,949.58 per ounce, while silver went up over 1 per cent to hit a high of USD 48.75 per ounce.
“Spot gold extended gains and surged above USD 3,940 per ounce for the first time ever as the US government shutdown enters its sixth day, following the Senate’s failure to pass funding bills on Friday,” Kaynat Chainwala, AVP Commodity Research at Kotak Securities, said.
Meanwhile, gold and silver futures also hit their fresh peaks in the domestic futures market on Monday.
The yellow metal futures for December delivery jumped by Rs 1,962 or 1.66 per cent to hit a record high of Rs 1,20,075 per 10 grams on the Multi Commodity Exchange (MCX).
The February 2026 contract for gold futures appreciated by Rs 2,047 or 1.71 per cent to touch a fresh peak of Rs 1,21,380 per 10 grams.
“Gold traded positively with sharp gains to hit a record Rs 1,20,000 per 10 grams-mark, as Comex gold extended its rally above USD 3,900 per ounce. The ongoing festive demand and global sentiment-driven rally continue to support prices, while rupee weakness adds domestic strength,” Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, said.
Silver, too, witnessed gains on the MCX. The white metal futures for December delivery bounced Rs 2,233 or 1.53 per cent to record Rs 1,47,977 per kilogram.
The March 2026 contract for silver futures jumped Rs 2,337 or 1.59 per cent to hit a lifetime high of Rs 1,49,605 per kg on the commodities bourse.
Globally, gold futures for December delivery climbed to hit a record high of USD 3,973.60 per ounce. Silver futures for December delivery also hit a high of USD 48.58 per ounce.
“The closure (of the US government) has delayed the release of key economic data, including September’s jobs report, creating uncertainty over the health of the labour market data and other critical indicators,” Chintan Mehta, Chief Executive Officer of Abans Financial Services, said.
Mehta added that the precious metal prices have extended their historic rally in recent months, driven by ongoing concerns over the US economy and disappointing employment data.
Renisha Chainani, Head of Research at Augmont, said gold prices have surged 50 per cent this year, while silver has surged 65 per cent this year in the international markets.
“2025 has been the year of uncertainties – it started with political uncertainty, then tariff uncertainty, geopolitical uncertainty, rate cut uncertainty and now US shutdown uncertainty. All these factors have supported bullion prices to rise phenomenally this year on safe-haven demand,” Chainani said.
She added that a weaker dollar, robust central bank purchases, rising demand for gold-backed exchange-traded funds, and growing interest from retail investors directly boosted demand for gold as a hedge.
This week, investors will closely monitor certain market indicators such as Federal Open Market Committee meeting minutes and Fed Reserve chair Jerome Powell’s speech on Thursday, Manav Modi, Analyst – Precious Metal Research at Motilal Oswal Financial Services, said.
