Gold prices on the MCX surged to new all-time highs on Wednesday, fueled by strong spot demand, positive global trends, concerns over the US government shutdown, and expectations of further rate cuts by the US Federal Reserve. MCX Gold crossed the ₹1,22,000 per 10-gram mark for the first time, reaching a peak of ₹1,22,829. MCX Silver also touched a record ₹1,48,724 per kg. By early afternoon, MCX Gold December futures were up 1.37% at ₹1,22,776, while Silver futures rose 1.82% to ₹1,48,444 per kg.
In international markets, US gold futures breached $4,000 per troy ounce, hitting a record $4,037 amid political and economic uncertainties, strong central bank purchases, Fed rate cut expectations, and a weaker dollar. Domestic spot gold has surged over 55% this year.
The ongoing US government shutdown, now in its seventh day, has delayed key economic data, increasing market uncertainty. Analysts expect gold prices to climb further, driven by anticipated Fed rate cuts and geopolitical tensions. Anuj Gupta forecasts MCX gold to reach ₹1,25,000 per 10 grams by year-end, while Renisha Chainani emphasizes the strong fundamentals supporting precious metals for the medium term.
