Gold, Silver Rate Today: Impact of US Shutdown End on Precious Metals

New Delhi: The end of the US Government shutdown – the longest in the nation’s history – has boosted investor confidence and reshaped market expectations for the Federal Reserve’s next rate decision. However, analysts say Gold and silver prices are likely to remain volatile this week as traders assess new economic data and shifts in risk sentiment.

Following the passage of a bipartisan bill in Congress to reopen the government, President Donald Trump is expected to sign the measure into law, restoring key services such as air traffic control, food assistance, and federal employee pay.

Global Market Sentiment and Precious Metals Outlook

The reopening of the US government has eased some pressure on global Markets, allowing the release of delayed economic reports such as inflation and employment data. These figures are critical for the Federal Reserve’s December meeting, where policymakers may decide on potential rate cuts.

In India, gold prices rose by ₹500 on Wednesday to close at ₹1,24,450 per 10 kilos. On the Multi Commodity Exchange (MCX), gold futures traded between ₹1,22,500 and ₹1,26,000, while silver prices also gained, supported by global market cues.

“Optimism around the reopening of the US government is driving short-term sentiment,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities. “The release of pending US data will be a major factor for gold’s direction, as it influences the Fed’s interest rate outlook.”

Trivedi added that gold volatility is expected to remain elevated as both India and the US are set to release their CPI (Consumer Price Index) data this week. “The broader trading range for gold remains between ₹1,22,500 and ₹1,26,000,” he noted.

Gold Prices Supported by Safe-Haven Demand

According to market experts, while the US government’s reopening could temporarily reduce uncertainty, the medium-term outlook for gold remains strong due to expectations of a rate cut by the Federal Reserve.

“The reopening has lifted risk appetite, but it doesn’t fix the US’s underlying fiscal issues,” said Dr. Renisha Chainani, Head of Research at Augmont. “Investors should remember that persistent fiscal risks and a delayed economic recovery will keep safe-haven demand for gold intact.”

She noted that gold remains well-supported at $4,000 per ounce on Comex, with $4,150 marking the next key resistance. “If inflation data remains soft and the Fed signals a dovish stance in December, we could see another leg of the gold rally,” she added.

Silver to Mirror Gold’s Movements

Silver, often called gold’s “cousin metal,” is also expected to follow similar trends driven by both safe-haven buying and industrial demand. “Silver has shown impressive resilience this month,” said Dr. Chainani. “The reopening of the US government will help stabilize industrial metals, but if the Fed turns dovish, silver could attract renewed investor interest.”

Experts say the metal’s performance has been closely linked to hopes of a global manufacturing rebound and broader commodity market trends. In the near term, silver prices are projected to trade between ₹1,66,000 and ₹1,72,000 per kilogram.

Key Takeaway: Market Caution Ahead

Although the end of the US shutdown has brought short-term relief to global investors, analysts warn that market volatility will persist until the Federal Reserve’s next policy decision. Precious metals – particularly gold and silver – are expected to remain sensitive to macroeconomic data, inflation updates, and US fiscal developments in the coming weeks.