Gold futures hits record Rs 1.23 lakh/10 grams as US-China tensions spur haven demand

Gold prices on Monday surged by Rs 2,613 to hit a fresh peak of Rs 1,23,977 per 10 grams in the domestic futures trade, buoyed by renewed US-China trade tensions, a prolonged US government shutdown, and growing global economic uncertainty that spurred safe-haven demand.

On the Multi Commodity Exchange (MCX), gold futures for December delivery jumped by Rs 2,613, or 2.15 per cent, to hit a record of Rs 1,23,977 per 10 grams.

The February 2026 contract for the yellow metal also appreciated Rs 2,296, or 1.87 per cent, to trade near its lifetime peak at Rs 1,24,999 per 10 grams. The contract had scaled a fresh high of Rs 1,25,025 per 10 grams on Thursday.

Last week, gold prices had rallied by Rs 3,251, or 2.75 per cent, touching a record of Rs 1,23,677 per 10 grams on Thursday, before witnessing mild profit booking towards the end of the week.

Silver futures also witnessed strong traction on Monday. The white metal for December delivery surged by Rs 5,856, or 4 per cent, to Rs 1,52,322 per kilogram on the MCX, near its lifetime high of Rs 1,53,388 per kg hit on Thursday.

The March 2026 contract for silver futures soared by Rs 4,992, or 3.39 per cent, to Rs 1,52,011 per kg, after touching a record of Rs 1,54,959 per kg last week. On the MCX, silver prices had gained Rs 722, or 0.49 per cent, in the previous week.

"Uncertainty around the ongoing US government shutdown, which shows no signs of resolution, will be in focus. Domestically, the upcoming Diwali festival may also boost gold demand, as festive buyers return to the market," said Aksha Kamboj, vice president, India Bullion and Jewellers Association and Executive Chairperson, Aspect Global Ventures.

In the international market, gold futures for December delivery climbed more than 2 per cent to hit a lifetime high of USD 4,096.06 per ounce on Monday.

"Gold prices rose to USD 4,090 per ounce on Monday, hovering near a record high, as renewed US-China trade tensions and broader economic uncertainty boosted safe-haven demand," Jigar Trivedi, Senior Research Analyst at Reliance Securities, said.

US President Donald Trump on Friday threatened to impose additional 100 per cent tariffs on Chinese exports and introduce new export controls on critical software from November 1.

"Adding to market jitters, the US government shutdown has stretched into another week, leaving traders without key macroeconomic indicators which needed to assess the health of the economy.

"Market participants widely expect the Federal Reserve to deliver an additional 25 basis points interest rate cuts at each of its remaining meetings this year," Trivedi said.

Comex silver futures for December delivery jumped 4.65 per cent to trade near its record at USD 49.44 per ounce after touching an all-time high of USD 49.96 per ounce on Thursday.

Rahul Kalantri, vice president of Commodities at Mehta Equities, said, “A heavy sell-off in global equity markets also supported safe-haven demand for precious metals.”

Investors will now focus on the upcoming US Consumer Price Index (CPI) inflation data for cues on the monetary policy outlook.

"Traders are also awaiting comments from US Federal Reserve officials, including Chair Jerome Powell, scheduled for Tuesday, which could provide further direction to gold prices in the near term," an expert said.