Mumbai, October 7 (IANS). Gold prices reached an all-time high on the Multi Commodity Exchange (MCX) on Tuesday. This is due to the possibility of additional rate cuts by the US Fed and global economic uncertainty.
MCX gold futures for December 5, 2025 rose 0.49 percent to Rs 1,20,837 at 10:35 am, which is its all-time high.
The price of silver contract with gold for December 5, 2025 has increased by 0.18 percent to Rs 1,47,784, which is the highest level of silver till date.
A rise in the prices of gold and silver is also being seen in the international markets. The price of gold on Comex has increased by $ 21.90 or 0.55 percent to reach $ 3,998 an ounce. However, silver is down marginally by 0.05 percent at $ 48.40 an ounce.
The main reason for the sharp rise in gold prices is the US shutdown entering its seventh day. Due to this, funds worth $ 1.7 trillion of America’s government agencies have been frozen, which is a quarter of the annual budget there. There is a possibility of job cuts due to this.
Market analysts said traders are now keeping an eye on key upcoming events, including details of the Federal Open Market Committee (FOMC) meeting, Fed Chairman’s speech, reopening of the China market after the holidays and developments related to the shutdown in the US.
Manav Modi of Motilal Oswal Financial Services said gold prices rose for the third session to all-time high due to US economic and political uncertainties and expectations of further interest rate cuts by the Federal Reserve.
The White House pushed back from President Donald Trump’s claims that the shutdown is leading to layoffs of government workers, but warned it could lead to job losses as the standoff is likely to continue into its seventh day.
–IANS
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