Gold prices soared to an all-time high on Tuesday, marking a remarkable surge that positions the precious metal for its strongest monthly performance in 14 years. Investors are flocking to gold as concerns rise over a potential US government shutdown and growing expectations for further Federal Reserve rate cuts.
In September alone, gold has climbed an impressive 11.4%, heading for its best month since August 2011, when prices jumped 15% amid strong safe-haven demand. According to the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold (10 grams) touched a new high of Rs 1,15,450 on Tuesday.
Globally, US gold futures for December delivery edged up 0.4% to $3,872. Market tensions were fueled by a lack of progress between President Donald Trump and Democratic leaders during a White House meeting aimed at preventing a government shutdown, which could disrupt several federal services as early as Wednesday. The US Labour Department warned that economic data releases, including the critical September jobs report, would be halted if the partial shutdown occurs.
Economic signals from recent data are encouraging traders to anticipate further easing by the Federal Reserve. CME Group’s FedWatch tool indicates an 89% chance of a 25-basis-point rate cut at the upcoming Fed meeting. While St. Louis Federal Reserve President Alberto Musalem expressed openness to further rate cuts, he cautioned that rates must remain high enough to manage inflation effectively.
In India, gold continues to outperform equities in a trend observed during four consecutive Diwali-to-Diwali cycles and seven of the last eight years. Silver, too, has outshone Indian equities for the third consecutive year, driven by industrial demand from sectors such as solar panels, semiconductors, and electric vehicles.
Analysts point out that robust central bank purchases, steady ETF inflows, and cautious remarks from the Fed are providing strong support to bullion prices. Investors are now closely monitoring upcoming US economic data, including job openings, private payrolls, the ISM manufacturing index, and Friday’s non-farm payroll report, for insights into the economy’s path forward.
Gold’s journey isn’t just numbers—it reflects a deeper sense of caution, hope, and the timeless appeal of security in uncertain times. For many investors, it’s a reminder that even in turbulence, tangible value endures.
