Gold Makes New High on Concerns Over US Shutdown
Investors flock to precious metals as uncertainty shakes global markets
Chennai: Gold prices soared to a record high above $3,900 per ounce on Monday as investors rushed toward safety amid deepening concerns over a prolonged US government shutdown. In the MCX, this took gold to Rs 1,20,000 per 10 gm and in the Delhi spot market, gold saw a new high of Rs 1,23,300.
Gold on MCX crossed 1,20,000 per 10 gm for the first time as the uncertainties at the global level drove international gold prices to another high of $3900 per ounce. In the Delhi spot market, gold made a high of Rs 1,23,300 per 10 gm against Rs 1,22,000 in the previous session.
The failure of the US Senate to pass funding bills has halted federal operations and postponed crucial reports, including the September jobs data. With the labour market showing signs of strain, traders are nearly certain of two upcoming Federal Reserve rate cuts this year. Despite limited new data, markets will closely watch remarks from Fed officials for policy direction, said Ajay Kedia, MD, Kedia Commodities.
Gold has surged almost 50 per cent year-to-date, supported by persistent uncertainty, central bank buying, expectations of further easing, and strong ETF inflows.
Silver too surged past $48 and hit the highest level since April 2011. The US government shutdown is driving safe-haven demand for silver as well. Further, the Silver Institute is forecasting a fifth straight annual global market deficit in 2025.
In the Delhi spot market, silver made a high of Rs 1,56,800 per kg against Rs 1,53,000 in the previous session. On MCX, silver made a high of Rs 1,47,700.
