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Gold Prices at All Time High: Gold prices jumped sharply on Tuesday, hitting an all-time high of Rs 1,10,312 per 10 grams in the domestic futures market. The rise of Rs 723 was fuelled by strong global cues and growing expectations of an interest rate cut by the US Federal Reserve as early as next week.
According to traders, weak US labour market data has strengthened the case for monetary policy easing. This has pressured the US dollar and increased demand for gold, a traditional safe-haven asset in times of uncertainty.
The most actively traded gold futures contract for October delivery rose by Rs 982, or 0.9 per cent, to a new peak of Rs 1,09,500 per 10 grams on the Multi Commodity Exchange (MCX). Market participants are now closely watching this week’s upcoming US economic releases — including the Producer Price Index (PPI) and Consumer Price Index (CPI) — which are expected to offer further insight into the Fed’s next move.
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Meanwhile, the US dollar index, which tracks the greenback’s performance against a basket of six major currencies, fell 0.12 per cent to 97.33, further boosting sentiment for gold.
In the international market, Comex gold futures for December delivery surged to a record high of USD 3,698.02 per ounce, while spot gold climbed to an all-time high of USD 3,658.38 per ounce.
Experts have also pointed out that the People’s Bank of China increased its gold holdings for the tenth consecutive month in August, continuing its diversification away from the US dollar. Additionally, a recent move by the US administration to exempt gold and certain other metals from country-specific tariffs added further support to prices.
Geopolitical tensions also played a role in the rally. Analysts said the potential for fresh US sanctions on Russia, following a retaliatory military strike by Moscow against Ukraine, has further increased safe-haven demand for gold.
English (US) ·