Safe-haven buying lifts gold to Rs 1,17,351 per 10 g, silver strengthens amid US shutdown fears

Domestic gold prices on the MCX jumped to an all-time high on Tuesday, while global prices breached $3,850 per ounce, driven by safe-haven buying amid concerns over a potential US government shutdown.

Gold December futures surged to a new peak of Rs 1,17,351 per 10 grams. Silver prices held firm near Rs 1,43,900 per kg, adding to the bullish momentum in precious metals.

Internationally, gold climbed past $3,850 per ounce, setting a record as investors sought safety amid expectations of U.S. rate cuts, fears of a government shutdown, and rising geopolitical tensions. Spot gold rose 1.9% to $3,829.63 per ounce by 2:00 p.m. ET, after touching an all-time high of $3,833.37 earlier in the session.

The surge came ahead of a crucial meeting where US President Donald Trump was scheduled to meet congressional leaders to discuss extending government funding. Without a deal, a federal shutdown would begin on Wednesday.

Adding to risk-off sentiment, Russia’s defence ministry announced that its forces had taken control of Shandryholove village in Ukraine’s eastern Donetsk region. Gold, which typically performs strongly in low-interest-rate environments and during periods of uncertainty, has gained more than 43% so far this year.

On Monday, gold and silver closed positively in both domestic and international markets. Gold December futures settled at Rs 1,16,344 per 10 grams, up 1.26%, while silver December futures rose 0.85% to Rs 1,43,099 per kg.

At the start of the week, both metals extended gains. Gold crossed $3,850 per troy ounce for the first time, while silver hit fresh 14½-year highs.“Gold is reestablishing its dominance in global currency markets, with purchasing power at its highest since 1981 and third-highest since 1950. Global uncertainty and strong demand from central banks and ETFs are pushing gold and silver prices higher,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.

U.S. pending home sales unexpectedly rose 4.0% in August, and the Dollar Index (DXY) was hovering near 97.96, supporting precious metal prices.

“We expect gold and silver prices to remain volatile this week amid dollar index fluctuations, global market volatility, and ahead of U.S. non-farm payroll data. Gold is likely to trade in the range of $3,754–3,920 per troy ounce, and silver in $45.50–48.40 per troy ounce,” Jain added.

– Gold: Support at Rs 1,15,650–1,15,100 | Resistance at Rs 1,17,200–1,18,000
– Silver: Support at Rs 1,41,750–1,40,400 | Resistance at Rs 1,44,500–1,46,000

Trade Suggestion:
Buy December gold above Rs 1,16,000 with a stop loss at Rs 1,15,100 and a target of Rs 1,17,200–1,18,000.

Gold rates in physical markets

Gold Price Today in Delhi

Standard gold (22 carat) is priced at Rs 87,448 per 8 grams, while pure gold (24 carat) is at Rs 93,960 per 8 grams.

Standard gold (22 carat) is priced at Rs 86,192 per 8 grams, while pure gold (24 carat) is at Rs 92,544 per 8 grams.

Standard gold (22 carat) is priced at Rs 86,464 per 8 grams, while pure gold (24 carat) is at Rs 92,856 per 8 grams.

Standard gold (22 carat) is priced at Rs 86,568 per 8 grams, while pure gold (24 carat) is at Rs 93,040 per 8 grams.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)