NEW DELHI– Gold prices hit an all-time high on Monday, surpassing $3,900 per ounce, as investors flocked to the safe-haven metal amid growing concerns over a prolonged U.S. government shutdown and mounting expectations of further Federal Reserve rate cuts.
Spot gold rose 0.4 percent to $3,900.40 per ounce in early Asian trading after briefly touching a record $3,919.59. U.S. gold futures for December delivery climbed 0.5 percent to $3,926.80.
The surge came as political uncertainty deepened in Washington, with investors seeking refuge from potential market volatility. Expectations are also increasing that the Fed may move toward more aggressive monetary easing to counter slowing growth.
Fed Governor Stephen Miran recently called for a bolder rate-cut plan, warning of possible economic fallout from the Trump administration’s policies.
Gold prices have already soared 49 percent in 2025, following a 27 percent gain in 2024. Analysts attribute the rally to strong central bank purchases, heightened demand for gold-backed exchange-traded funds (ETFs), a weaker U.S. dollar, and increased retail buying amid global trade and geopolitical tensions.
In India, the world’s second-largest gold consumer, physical demand rose last week despite record prices, driven by festival-related buying.
According to the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold started the week at ₹1,15,454 per 10 grams, climbed to a record ₹1,17,332, and ended Friday slightly lower at ₹1,16,954 — still about ₹1,500 higher than the previous Monday.
Silver followed gold’s upward trajectory, ending the week at ₹1,45,610 per kilogram, up ₹1,223 from ₹1,44,387 a week earlier. (Source: IANS)
