New Delhi | Gold prices rallied for the third straight day and gained Rs 2,600 to hit a fresh lifetime high of Rs 1,26,600 per 10 grams in the national capital on Wednesday in line with strong global trends amid looming geopolitical uncertainties triggered by the prolonged shutdown of the US government.

The precious metal has added Rs 6,000 in the past three days as global risk-aversion has prompted investors to rush for safe haven assets.

According to the All India Sarafa Association, gold of 99.9 per cent purity had closed Rs 700 higher at Rs 1,24,000 per 10 grams on Tuesday, a day after registering a steep surge of Rs 2,700 on Monday.

On Wednesday, the yellow metal of 99.5 per cent purity appreciated by Rs 2,600 to touch an all-time high of Rs 1,26,000 per 10 grams (inclusive of all taxes) in the local bullion market.

It had settled at Rs 1,23,400 per 10 grams in the previous market session.

"Bullion continued its rally, with spot gold exceeding USD 4,000 per ounce-mark for the first time, driven by ongoing demand for safe-haven assets, purchases by central banks, an optimistic outlook from global investment banks, and substantial investments from high-net-worth individuals in precious metals, rapid growth of gold-backed exchange-traded funds.

"These factors played a crucial role in driving this record-breaking rally, and we believe this trend will persist," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.

So far in this year, gold prices have added Rs 47,650, or 60.35 per cent, rallying from Rs 78,950 per 10 grams on December 31, 2024.

Analysts said the ongoing US government shutdown and rising global geopolitical tensions have fuelled the flows into the safe haven asset.

In addition, silver prices surged by Rs 3,000 to trade near its record high at Rs 1,57,000 per kilogram (inclusive of all taxes) on Wednesday. The white metal had ended at Rs 1,54,000 per kg on Tuesday, as per the association.

The white metal had hit a record high of Rs 1,57,400 per kilogram on Monday.

Silver prices have risen by Rs 67,300, or 75.03 per cent, skyrocketing from Rs 89,700 per kilogram on December 31, 2024.

In the overseas markets, bullion prices witnessed robust traction. Spot gold went up nearly 2 per cent to hit a record high of USD 4,049.59 per ounce.

"Spot gold climbed above the key USD 4,000 per ounce-mark for the first time, driven by safe-haven demand amid concerns about the US economy and the government shutdown.

"Geopolitical tensions in Ukraine, political instability in France and Japan, and rising expectations of Fed rate cuts amid ongoing data blackout also supported upside," Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said.

Spot silver rose more than 2 per cent to hit a high of USD 49.07 per ounce in the global markets.

Meanwhile, gold futures for December delivery soared by Rs 1,969, or 1.62 per cent, to scale a fresh peak of Rs 1,23,080 per 10 grams on the Multi Commodity Exchange (MCX).

The February 2026 contract for gold increased by Rs 1,940, or 1.58 per cent, to hit a record high of Rs 1,24,324 per 10 grams.

Gold futures have risen by Rs 46,332, or 60.37 per cent in the current calender year, climbing from Rs 76,748 per 10 grams, as on December 31, 2024.

Meanwhile, silver futures also gained robust traction on the MCX. The white metal futures for December delivery skyrocketed by Rs 3,346 or 2.3 per cent to touch an all-time high of Rs 1,49,138 per kilogram.

Similarly, the March 2026 contract for silver futures swelled by Rs 3,160, or 2.14 per cent, to hit a fresh record high of Rs 1,50,675 per kg on the commodities bourse.

This year so far, silver futures have surged by Rs 61,905, or 70.96 per cent, rallying from Rs 87,233 per kilogram, as on December 31, 2024.

"Gold on Wednesday has shattered records, crossing Rs 1,20,000 per 10 grams in India, while silver surged past Rs 1,50,000 per kilogram -- marking year-to-date gains of over 50 per cent and 60 per cent, respectively.

"In global markets, gold is trading above USD 4,000-level, backing the narrative that investors are racing toward safe haven asset amid inflation, geopolitical jitters, and volatility in equities," said Inderbir Singh Jolly, Chief Executive Officer at Wealth and Asset Management at PL Capital.

Singh added that this metal's rally underscores deep structural uncertainty, a clarion call for cautious allocations in the months ahead.

According to World Gold Council data, net inflows into Indian gold exchange traded funds totalled USD 902 million in September 2025, a 285 per cent increase from USD 232 million in August.

This was the fourth consecutive month of inflows, and all months of 2025 saw positive traction except in March and May.

On the global front, Comex gold futures for December delivery appreciated by nearly 2 per cent to hit a fresh peak of USD 4,071.50 per ounce while silver futures rose more than 2 per cent to hit a high of USD 48.83 per ounce.

"Several Federal Reserve officials are scheduled to speak later in the day. The Federal Open Market Committee (FOMC) meeting minutes will be released, which may give clues about the Fed's future policy direction and potentially influence the US dollar and billion trend," Saumil Gandhi of HDFC Securities said.