Gold prices on Tuesday climbed Rs 500 to touch a lifetime high of Rs 1.20 lakh per 10 grams in the national capital due to a weak dollar and expectations of further rate cuts by the US Federal Reserve. 

The precious metal had settled at Rs 1,18,900 per 10 grams in the previous session.

"Gold prices surged as investors turned jittery amid looming prospects of a US government shutdown after talks between Trump and congressional leaders ended without agreement on short-term funding.  "This unsettled investors as it could delay the release of the official jobs report and complicate the Federal Reserve's policy trajectory," said Kaynat Chainwala, AVP Commodity Research, Kotak Securities.

In addition, silver prices increased by Rs 500 to hit a new peak of Rs 1,50,500 per kilogram on Tuesday. It had surged Rs 7,000 to hit a fresh peak of Rs 1,50,000 per kg on Monday.