Gold futures touch all-time high of Rs 1.22 lakh/10g amid Fed’s dovish signals

Gold prices on Wednesday soared by Rs 1,109 to a new record high of Rs 1,22,220 per 10 grams in the domestic futures market. The surge came as investors moved towards safe-haven assets amid mounting global economic uncertainties and a dovish outlook from the US Federal Reserve.

On the Multi Commodity Exchange (MCX), gold futures for December delivery rose 0.91 per cent to hit an all-time high of Rs 1,22,220 per 10 grams. Extending gains for the ninth consecutive session, the February 2026 contract also climbed Rs 1,085, or 0.88 per cent, to reach Rs 1,23,469 per 10 grams.

Silver follows upward trend

Silver futures also witnessed a sharp rise on MCX. The December delivery jumped Rs 2,387, or 1.63 per cent, to touch a record high of Rs 1,48,179 per kilogram. Similarly, the March 2026 contract surged Rs 2,485, or 1.68 per cent, to hit Rs 1,50,000 per kilogram.

Global rally strengthens bullion

In the international market, Comex gold futures for December delivery climbed over 1 per cent to a record high of USD 4,051.55 per ounce. Silver futures for December rose nearly 2 per cent to USD 48.61 per ounce.

Analysts attributed the rally to safe-haven buying, falling bond yields, and expectations of further US interest rate cuts.

“Gold surpassed USD 4,000 per ounce, reaching a fresh milestone as investors fled to safety amid global economic uncertainties and a dovish Federal Reserve (Fed) outlook,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.

Trivedi added that the ongoing US government shutdown, now in its second week, has delayed key economic data, complicating assessments of the country’s financial health. “Despite this uncertainty, traders are pricing in 25 basis point rate cuts in October and December by the Fed,” he said.

Political instability fuels demand

Manav Modi, Analyst – Precious Metal Research at Motilal Oswal Financial Services, said political turmoil in France and leadership changes in Japan have intensified global market concerns, increasing demand for safe-haven bullion.

ETF inflows hit record high

A World Gold Council (WGC) report released on Tuesday noted that global gold-backed ETFs recorded their largest-ever quarterly inflows during the three months ending September.

“Inflows into gold exchange traded funds (ETFs) hit USD 64 billion year-to-date globally, with a record USD 17.3 billion in September,” the report stated.

According to the WGC, inflows rose 23 per cent to USD 26 billion quarter-on-quarter, led by North American funds, followed by European and Asian investors.

“Ongoing trade, policy, and geopolitical risks continue to persist with no clear signs of abatement,” the report added.