Gold Rate Rises Above Rs 1,21,000 Amid US Govt Shutdown & Fed Rate Cut Hopes

Gold prices on Wednesday surged by Rs 1,100 to cross Rs 1.21 lakh per 10 grams mark in the national capital, tracking firm global cues amid the US government shutdown after the Congress failed to approve

fresh federal funding.

According to the All India Sarafa Association, the precious metal of 99.9 per cent purity jumped Rs 1,100 to hit a fresh peak of Rs 1,21,100 per 10 grams (inclusive of all taxes). It had closed at Rs 1,20,000 per 10 grams on Tuesday.

In the local bullion market, gold of 99.5 per cent purity appreciated by Rs 1,100 to hit a lifetime high of Rs 1,20,500 per 10 grams (inclusive of all taxes) on Wednesday. The yellow metal had settled at Rs 1,19,400 per 10 grams in the previous session.

However, silver prices remained flat at Rs 1,50,500 per kilogram (inclusive of all taxes), also at its record levels, as per the association.

Traders said a weakening labour market has reinforced expectations of imminent interest rate cuts by the Federal Reserve, further lending support to the bullion prices.

In the overseas markets, spot gold rose more than 1 per cent to hit a record high of USD 3,895.33 per ounce, while spot silver increased by nearly 2 per cent to hit a high of USD 47.56 per ounce.

Gold Price Prediction 2025: ‘Yellow Metal Likely To Further Rise 25% With Periodic Corrections’

Gold prices have surged over 50% in the past few months, surpassing other asset classes like equity and real estate. The yellow metal is trading near its all-time high levels, and experts believe the bull run might continue with periodic corrections. Sandip Raichura, director at brokerage firm PL Capital, says international gold prices might rise beyond $4,800 an ounce from the current nearly $3,800, an appreciation of over 26%.

This year has placed gold right at the centre of financial history, with US spot gold prices reaching an all-time high of about $3,791.11 per ounce on September 23, 2025, almost double its levels exactly two years ago. In addition, September 23, 2025, saw a 3-year high daily inflows into gold ETFs, further exacerbating strength in the metal.

What Factors Affect Gold Prices In India?

International market rates, import duties, taxes, and fluctuations in exchange rates primarily influence gold prices in India. Together, these factors determine the daily gold rates across the country.

In India, gold is deeply cultural and financial. It is a preferred investment option and is key to celebrations, particularly weddings and festivals.

With constantly changing market conditions, investors and traders monitor fluctuations closely. Staying updated is crucial for effectively navigating dynamic trends.

(With PTI Inputs)