Gold prices hit record high today: Here we decode why
What's the story
Gold prices have hit a record high in India, with futures hitting ₹1,20,900 per 10g on the Multi Commodity Exchange (MCX) today. The surge is mainly due to global economic and political uncertainties in the US. The ongoing US government shutdown has raised fears of job losses and frozen some $1.7 trillion in funds for agency operations, about one-quarter of the annual federal budget.
Precious metal performance
Silver futures also show positive movement
Along with gold, silver futures have also seen a rise, trading close to their peak. The February 2026 gold futures contract rose by ₹648 (0.53%) to a new high of ₹1,22,231 per 10g. Meanwhile, the March 2026 silver futures showed positive movement, advancing by ₹327 (0.21%) to ₹1,49,500 per kg after its previous session's record of ₹1,49,605 per kg.
Market impact
Factors contributing to gold's record surge
The ongoing US government shutdown has disrupted key federal programs and delayed important economic data releases, including the September employment report. The absence of official US economic indicators and expectations of two Federal Reserve interest rate cuts this year have made gold more attractive to investors. "Sustained gold buying by global central banks also continues to power the record rally in the precious metal prices," an expert said.
Global trend
Central banks resumed gold purchases in August
The World Gold Council (WGC) recently revealed that central banks resumed gold purchases in August, with global reserves increasing by 15 tons. The People's Bank of China (PBOC) reported its gold reserves stood at 74.06 million fine troy ounces at the end of September, up from 74.02 million the month before, marking its 11th consecutive month of bullion acquisition.