Gold Futures Hit Record ₹1.22 lakh/10g on Global Worries, Dovish Fed Cues

Gold prices on Wednesday rallied Rs 1,109 to a new record high of Rs 1,22,220 per 10 grams in the domestic futures market as investors flocked to safe-haven assets amid escalating global economic uncertainties and a dovish outlook from the US Federal Reserve.

On the Multi Commodity Exchange (MCX), gold futures for December delivery surged Rs 1,109, or 0.91 per cent, to hit an all-time high of Rs 1,22,220 per 10 grams.

Extending gains for the ninth straight session, the February 2026 contract for gold futures also climbed Rs 1,085, or 0.88 per cent, to reach a lifetime high of Rs 1,23,469 per 10 grams.

Silver futures too witnessed strong buying interest on MCX. The white metal for December delivery jumped Rs 2,387, or 1.63 per cent, to hit a record high of Rs 1,48,179 per kilogram.

The March 2026 contract for silver futures surged by Rs 2,485, or 1.68 per cent, to touch an all-time high of Rs 1,50,000 per kg on the commodities bourse.

In the international market, Comex gold futures for December delivery rose over 1 per cent to hit a record high of USD 4,051.55 per ounce, while silver futures for December gained nearly 2 per cent to hit a high of USD 48.61 per ounce.

Analysts said the rally in bullion was underpinned by a mix of safe-haven buying, falling bond yields, and rising expectations of further US interest rate cuts.

"Gold surpassed USD 4,000 per ounce, reaching a fresh milestone as investors fled to safety amid global economic uncertainties and a dovish Federal Reserve (Fed) outlook," Jigar Trivedi, Senior Research Analyst at Reliance Securities, said.

Jigar Trivedi said the ongoing US government shutdown, now in its second week, has delayed key economic data, complicating assessments of the country's economic health. "Despite this uncertainty, traders are pricing in 25 basis point rate cuts in October and December by the Fed," he added.

Manav Modi, Analyst – Precious Metal Research at Motilal Oswal Financial Services, said the ongoing political turmoil in France and a recent leadership change in Japan are adding further layers of uncertainty for global markets and boosting demand for the safe-haven bullion.

Meanwhile, a new report by the World Gold Council (WGC) released on Tuesday said global gold-backed ETFs recorded their largest quarterly inflows on record during the three-month period ending September.

"Inflows into gold exchange traded funds (ETFs) hit USD 64 billion year-to-date globally, with a record USD 17.3 billion in September," the report said.

Inflows rose 23 per cent to USD 26 billion quarter-on-quarter, led by North American funds, followed by European and Asian investors.

"Ongoing trade, policy, and geopolitical risks continue to persist with no clear signs of abatement," the WGC report said.