**Gold Prices Hit Record High Today: Here’s Why**
*By Dwaipayan Roy | Oct 07, 2025 | 04:21 pm*
Gold prices in India have soared to a record high, with futures reaching ₹1,20,900 per 10 grams on the Multi Commodity Exchange (MCX) today. This surge is primarily driven by ongoing global economic and political uncertainties, particularly those arising from the United States.
### What’s Driving the Surge?
The ongoing US government shutdown is a major factor behind the spike in gold prices. The shutdown has raised concerns over potential job losses and has frozen approximately $1.7 trillion in funds allocated for agency operations — roughly one-quarter of the annual federal budget. This disruption has delayed the release of crucial economic data, including the September employment report, fueling investor uncertainty.
In the absence of official US economic indicators and amid growing expectations of two interest rate cuts by the Federal Reserve later this year, investors are increasingly turning to gold as a safe haven. An expert noted, “Sustained gold buying by global central banks also continues to power the record rally in precious metal prices.”
### Precious Metals Performance
Silver futures have also recorded gains, trading near their peak levels. The February 2026 gold futures contract climbed by ₹648 (0.53%) to a new high of ₹1,22,231 per 10 grams. Similarly, March 2026 silver futures advanced ₹327 (0.21%) to ₹1,49,500 per kilogram, following a record ₹1,49,605 per kilogram achieved in the previous session.
### Global Trends
According to the World Gold Council (WGC), central banks worldwide resumed gold purchases in August, adding a total of 15 tons to their reserves. The People’s Bank of China (PBOC) reported an increase in its gold holdings to 74.06 million fine troy ounces at the end of September, up from 74.02 million the previous month. This marks China’s 11th consecutive month of bullion accumulation, underscoring continued global demand for the precious metal.
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The combination of US economic uncertainty, expectations of monetary easing, and robust central bank buying has driven gold prices to record highs, signaling ongoing investor preference for safety amid volatile conditions.
https://www.newsbytesapp.com/news/business/gold-hits-record-high-amid-us-government-shutdown/story
