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Gold and silver prices surged sharply in the domestic futures market on Wednesday. Growing global economic uncertainty, a partial US government shutdown, and the prospect of interest rate cuts by the Federal Reserve fueled safe-haven demand, pushing bullion prices to record highs. According to PTI, gold futures for December delivery on the Multi Commodity Exchange (MCX) jumped ₹535 (0.45%) to a record high of ₹1,17,800 per 10 grams. Meanwhile, the February contract rose ₹617 (0.52%) to an all-time high of ₹1,19,055 per 10 grams. This marked the fifth consecutive trading session in which gold prices have risen. Silver also broke records. Silver for December delivery rose ₹2,699 (1.89%) to ₹1,44,844 per kilogram. The March 2026 contract rose ₹3,980 (2.77%) to reach an all-time high of ₹1,47,784 per kilogram. What is the impact of gold? The failure of the US Senate to pass a spending bill led to a government shutdown, leaving investors confused and turning to safe-haven assets like gold and silver. Weak US labor data further fueled expectations of a Federal Reserve interest rate cut. Manav Modi, analyst at Motilal Oswal Financial Services, says that the US shutdown and rising risk aversion have driven investors to safe-haven assets like gold, leading to a surge in prices. Furthermore, weak economic indicators have increased the likelihood of Fed policy easing. What is the situation in the international market? Gold for December delivery on the international futures market Comex jumped 1% to a high of $3,903.45 per ounce, crossing $3,900 for the first time. Meanwhile, silver rose to $47.81 per ounce. A weak dollar also provided support. The dollar index, which measures the dollar's strength against a basket of six major currencies, fell 0.16% to 97.62. A weak dollar made gold cheaper for holders of other currencies, supporting demand and prices. Jigar Trivedi, senior analyst at Reliance Securities, said traders are now focused on the Fed's next meeting and a possible interest rate cut. The probability of a rate cut in December has reached approximately 76%.