Gold prices have just taken a jaw-dropping leap, soaring by Rs 2,700 to reach a staggering new high of Rs 1,23,300 per 10 grams in the national capital. This dramatic surge is fueled by a wave of safe-haven buying in overseas markets, and it’s a clear sign of investors flocking to gold as a bastion of stability amidst chaos.

According to the All India Sarafa Association, this is a significant jump from last Friday's closing price of Rs 1,20,600 per 10 grams. The local bullion market didn't hold back either, with gold of 99.5% purity also hitting a record high of Rs 1,22,700 per 10 grams. Just last session, it was at Rs 1,20,000!

Saumil Gandhi, a Senior Analyst at HDFC Securities, shed light on the reasons behind this bullish momentum. He mentioned that even with record-breaking prices, investors are still drawn to gold, anticipating further gains supported by strong fundamentals. The anxiety surrounding a prolonged U.S. government shutdown adds fuel to this fire, as it stirs concerns about the economy’s performance.

But it’s not just gold that’s shining bright; silver is following suit with its own remarkable rise. The white metal surged by Rs 7,400 to reach a new peak of Rs 1,57,400 per kilogram, up from Rs 1,50,000 per kg on Friday. To put this in perspective, silver prices have skyrocketed by an astonishing Rs 67,700 or 75.47% in the current calendar year, climbing from Rs 89,700 per kg on December 31, 2024.

Internationally, spot gold has been setting records too, gaining nearly 2% to touch an all-time high of USD 3,949.58 per ounce. Meanwhile, silver also saw a lift, rising over 1% to reach USD 48.75 per ounce. As Kaynat Chainwala, AVP of Commodity Research at Kotak Securities, points out, this spike comes just as the U.S. government shutdown stretches into its sixth day after the Senate failed to pass funding bills.

The news doesn't stop there! Gold and silver futures are also hitting fresh peaks in the domestic market. The December delivery futures for gold jumped by Rs 1,962 or 1.66%, reaching Rs 1,20,075 per 10 grams on the Multi Commodity Exchange (MCX). The February 2026 contract for gold futures also rose by Rs 2,047 or 1.71%, touching Rs 1,21,380.

Jateen Trivedi, VP Research Analyst at LKP Securities, shared insights into the driving factors behind these price increases, citing ongoing festive demand, a global sentiment-driven rally, and a weakening rupee contributing to domestic price strength.

Silver futures weren’t left out, either. The December delivery futures for silver saw a jump of Rs 2,233 or 1.53%, setting a new record at Rs 1,47,977 per kilogram. The March 2026 contract leaped Rs 2,337 or 1.59% to hit a lifetime high of Rs 1,49,605 per kg on the commodities bourse.

On a global scale, December gold futures also reached new heights at USD 3,973.60 per ounce, with silver futures following suit at USD 48.58 per ounce.

With the U.S. government shutdown delaying crucial economic data releases, Chintan Mehta, CEO of Abans Financial Services, emphasizes the growing uncertainty surrounding labor market health and other economic indicators. He noted that these factors have propelled precious metals into a historic rally over the past months, driven by persistent concerns about the U.S. economy.

Renisha Chainani, Head of Research at Augmont, highlighted that gold prices have surged by a remarkable 50% this year while silver has risen by 65% in international markets. She attributes this surge to a year filled with uncertainties—from political turmoil to trade tensions and now the looming government shutdown—all of which have led to increased demand for safe-haven assets like gold.

Looking ahead, investors will be keenly watching key market indicators this week, including the Federal Open Market Committee meeting minutes and comments from Fed Chair Jerome Powell, which could further influence these gold and silver prices.