Gold Prices Surge Amid Optimism for Fed Rate Cut and Shutdown Resolution

Gold prices increased significantly due to optimism about a possible interest rate cut by the US Federal Reserve and the anticipated end of the prolonged US government shutdown. Market analysts note strong investor sentiment in safe-haven assets like gold and silver amid these developments.

Gold prices registered a notable climb of Rs 328 to reach Rs 1,24,241 per 10 grams in futures trading on Wednesday, reflecting gains in global markets. This uptick was attributed to renewed optimism about a potential interest rate reduction by the US Federal Reserve next month.

Analysts indicated that progressing towards a resolution to the extensive US government shutdown has bolstered the status of gold as a safe-haven asset. On the Multi Commodity Exchange, December delivery gold futures soared Rs 328, or 0.26%, to Rs 1,24,241 per 10 grams with a business turnover of 12,868 lots. The February 2026 contract also rose by Rs 171 to Rs 1,25,748 per 10 grams.

Silver followed the upward trend, with its December futures seeing a rise of Rs 2,198 to Rs 1,56,885 per kilogram. In international markets, Comex gold for December delivery increased by 0.13% to USD 4,121.80 an ounce, driven by expectations of an imminent rate cut from the Federal Reserve. Such movements affirm gold's trajectory toward its strongest annual performance in decades.

(With inputs from agencies.)