Gold prices achieved an all-time high of Rs 1,12,750 per 10 grams in India on Tuesday, driven by robust global cues and the anticipated interest rate cuts by the US Federal Reserve. This surge reflects a significant moment in the domestic futures market.
Trade on the Multi Commodity Exchange (MCX) showed gold futures for October delivery increasing by Rs 520, a rise of 0.46 percent, to reach this landmark price. Similarly, gold contracts for December delivery rose by Rs 530, also marking a fresh record at Rs 1,13,750 per 10 grams.
Silver prices mirrored this bullish trend, with futures for December delivery climbing by Rs 461 or 0.34 percent to a record high of Rs 1,34,016 per kilogram. March delivery silver futures also saw gains, reaching Rs 1,35,397 per kg, reflecting a continuous upward trajectory.
Analysts attribute this relentless rally in gold and silver to several factors. Recent moves by the US Federal Reserve, including a 25 basis points cut and potential future adjustments, have enhanced market sentiment, encouraging investments in precious metals.
“The gold and silver markets show no signs of a slowdown,” stated Rahul Kalantri, Vice-President of Commodities at Mehta Equities Ltd. “Gold has reached lifetime highs, while silver touched its strongest point in nearly 15 years.”
Kalantri noted that the weakened dollar index and depreciating rupee further boosted domestic bullion prices, attracting investors seeking stability amidst fluctuating markets.
Ongoing demand from central banks and continued exchange-traded fund inflows fueled this strength in precious metals. The current geopolitical tensions and uncertainty, particularly stemming from the Russia-Ukraine conflict and issues in the Middle East, added to the urgency of safe-haven investments.
Internationally, gold futures for December delivery surged to USD 3,794.82 per ounce, reflecting a similar pattern of rising prices.
“The fresh record for gold comes as expectations for more rate cuts from the Federal Reserve intensify,” explained Jigar Trivedi, Senior Research Analyst at Reliance Securities. “The recent rate cut increased the market’s confidence in additional reductions due to signs of a weakening labor market.”
Trivedi observed that traders eagerly await comments from Fed Chair Jerome Powell later today, along with the upcoming Personal Consumption Expenditures price index release, which serves as the Fed’s preferred inflation gauge. These insights will guide future monetary policy direction.
Investor sentiment remains high despite the risks associated with geopolitics and fluctuating economic conditions, as the demand for safe-haven assets prevents significant corrections in gold and silver prices. As the global market anticipates further developments, analysts predict that this bullish trend may sustain. Continuous engagement with these market indicators proves essential for understanding the future trajectory of bullion.
