On the global front, spot gold was trading lower at $3,958.18 per ounce

Gold price jumped Rs 700 to hit a record high of Rs 1,24,000 per 10 grams in the national capital on Tuesday as investors weighed the risk of an ongoing US government shutdown and growing bets of additional rate cuts by the Federal Reserve.

According to the All India Sarafa Association, the yellow metal of 99.9 per cent purity had closed at Rs 1,23,300 per 10 grams on Monday.

In the local bullion market, gold of 99.5 per cent purity appreciated by Rs 700 to hit a lifetime peak of Rs 1,23,400 per 10 grams (inclusive of all taxes) on Tuesday. It had settled at Rs 1,22,700 per 10 grams in the previous market session.

However, silver retreated from its all-time high level, and plunged Rs 3,400 to Rs 1,54,000 per kilogram. The white metal had ended at Rs 1,57,400 per kg on Monday. On the global front, spot gold was trading lower at USD 3,958.18 per ounce. The yellow metal had hit an all-time high of USD 3,977.45 per ounce on Tuesday.

"Gold prices rose on Tuesday, with spot gold approaching the important milestone of USD 4,000 per ounce. "Expectations of a dovish monetary policy from the Federal Reserve, along with ongoing demand for safe-haven assets, drove the gold price to hit a series of record highs, even as it was technically in overbought territory," said Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities.