Sat Oct 04 02:00:00 UTC 2025: ## Gold Prices Soar to Record Highs Amid US Shutdown Concerns, Fed Rate Cut Speculation

**New Delhi:** Gold prices have surged to unprecedented levels, driven by safe-haven demand fueled by the US government shutdown and growing expectations of a US Federal Reserve rate cut. The MCX gold rate settled at ₹1,18,100 per 10 grams, marking a 2.79% weekly gain and reaching a new peak of ₹1,18,444 earlier in the week.

Internationally, spot gold hit a record high of $3,896.91 per ounce, reflecting the global appeal of the precious metal. Experts attribute the rally to economic uncertainty stemming from the US shutdown, which has triggered speculation about a potential Fed rate cut. A weaker US dollar, allowing the Indian Rupee to gain ground, has further supported domestic gold prices.

“The latest catalyst behind this steep rise in prices has been the US government shutdown,” said Sugandha Sachdeva, Founder of SS WealthStreet. “Concerns about the economic fallout of a prolonged shutdown, along with delays in key economic data releases… injected fresh safe-haven demand into gold.”

Analysts are predicting continued upward momentum, advising investors to adopt a “buy-on-dips” strategy, with near-term targets of ₹1,21,000 and ₹1,25,000 per 10 grams.

Silver also experienced a significant surge, reaching a record high of ₹1,46,975 per kg in domestic markets and $48.36 per ounce internationally.

Despite Jerome Powell’s initial strengthening of the US dollar following the recent Fed interest rate cut, the overall outlook for gold remains positive, according to Ross Maxwell, Global Strategy Lead at VT Markets. He cited the potential for stagflation and further support from anticipated rate cuts as key drivers.

Additional factors contributing to the gold rally include cooling job market data, robust global gold ETF inflows, and continued central bank accumulation. Global central banks added a net 15 tonnes of gold in August, reversing the stagnation seen in July, according to sources.

Geopolitical tensions, particularly the ongoing conflict between Russia and Ukraine, continue to bolster safe-haven demand for gold.

Experts advise investors to consider gold’s reputation as a reliable store of value and to employ a dollar-cost averaging strategy to mitigate risk. While short-term corrections are possible, the overall structural drivers suggest that both gold and silver are likely to remain on an upward trajectory. Key support levels for gold are identified between ₹1,13,800 to ₹1,15,000 per 10 grams, and a breach of this zone could signal further positive movement towards ₹1,21,000 to ₹1,25,000 per 10 grams.

Read More