On Tuesday, domestic gold prices reached an unprecedented peak, while global prices surpassed $3,850 per ounce, propelled by safe-haven purchasing in light of apprehensions regarding a possible US government shutdown. Gold December futures reached a new high of Rs 1,17,351 per 10 grams. Silver prices remained stable around Rs 1,43,900 per kg, contributing to the positive trend in precious metals.
Internationally, gold climbed past 3,850 per ounce, setting a record as investors sought safety amid expectations of U.S. rate cuts, fears of a government shutdown, and rising geopolitical tensions. Spot gold experienced an increase of 1.9%, reaching $3,829.63 per ounce by 2:00 p.m., following a peak of $3,833.37 earlier in the trading session. The increase occurred prior to an important meeting in which US President Donald Trump was set to engage with congressional leaders regarding the extension of government funding. A federal shutdown is set to commence on Wednesday in the absence of an agreement. In a development contributing to risk-off sentiment, Russia’s defence ministry reported that its forces have assumed control of Shandryholove village in the eastern Donetsk region of Ukraine. Gold, traditionally exhibiting robust performance in low-interest-rate contexts and times of uncertainty, has appreciated over 43% year-to-date.
On Monday, gold and silver experienced positive closures in both domestic and international markets. Gold December futures concluded at Rs 1,16,344 per 10 grams, reflecting an increase of 1.26%, whereas silver December futures experienced a rise of 0.85%, reaching Rs 1,43,099 per kg. At the beginning of the week, both metals continued to experience upward momentum. Gold surpassed $3,850 per troy ounce for the first time, while silver reached new highs not seen in 14½ years. Gold is reaffirming its preeminence in international currency markets, exhibiting purchasing power levels not seen since 1981 and ranking as the third-highest since 1950. Global uncertainty coupled with robust demand from central banks and ETFs is driving an increase in gold and silver prices,” stated Manoj Kumar Jain.
U.S. pending home sales experienced an unexpected increase of 4.0% in August, while the Dollar Index was positioned around 97.96, providing support for precious metal prices. “We anticipate that gold and silver prices will exhibit volatility this week, influenced by fluctuations in the dollar index, global market instability, and in anticipation of U.S. non-farm payroll data.” Gold is expected to fluctuate between $3,754 and $3,920 per troy ounce, while silver is projected to range from $45.50 to $48.40 per troy ounce, Jain noted.