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Gold Hits New Record on MCX Above ₹1.20 Lakh as Silver Surges in Tandem

Safe-haven demand fueled by a U.S. shutdown and dollar weakness is propelling bullion.

Overview

  • On Tuesday, MCX gold traded at a record ₹1,20,900 per 10 grams, up ₹651 from the prior close and more than 50% higher year to date.
  • Silver futures jumped to roughly ₹1,47,977 per kilogram during Monday’s session, and domestic benchmarks opened higher the same day.
  • Drivers cited include the sixth day of the U.S. government shutdown, rising expectations of Federal Reserve rate cuts in October, and a Dollar Index down about 9.51% this year.
  • International gold approached $4,000 per ounce, with analysts also pointing to political turmoil in France as a catalyst for risk-off buying.
  • Analysts from Motilal Oswal, IBJA and Reliance Securities reported strong investor interest, while silver’s appeal was reinforced by demand from solar, electronics and electric vehicles.