Gold prices surged to a historic high on October 6, 2025, breaking the $3,900-per-ounce mark amid the ongoing US government shutdown and expectations of Federal Reserve rate cuts. These factors sparked strong safe-haven demand globally, pushing gold to nearly ₹1,20,000 per 10 grams in Indian markets.
US Shutdown Impact
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The partial US government shutdown created uncertainty, delaying key economic data and heightening risk aversion.
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This has prompted investors to flock to gold as a safe-haven asset.
Price Milestones
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Spot gold hit an all-time high of $3,924.39 per ounce (approx ₹1,20,770 per 10 grams).
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December gold futures on MCX touched ₹1,19,200 per 10 grams.
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Retail 24-carat gold prices reached around ₹11,940 per gram in major Indian cities.
Monetary Policy Outlook
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Market participants anticipate further Federal Reserve interest rate cuts, boosting bullion demand.
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A weaker US dollar and falling Japanese yen also contributed to gold's appeal.
Market Sentiment
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Geopolitical tensions and global economic uncertainties continue to support gold’s rally.
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Central banks and retail investors increased gold purchases amid volatile conditions.
Sources: Hindustan Times, India Today, New Indian Express, News18, Economic Times, Reuters, CNBC