Gold prices surged to an all-time high of Rs 1,12,750 per 10 grams in the domestic futures market on Tuesday, propelled by global economic cues and strong investor sentiment. With expectations of further interest rate cuts from the US Federal Reserve, both gold and silver continue their upward trajectory, marking significant milestones in the precious metals market.
The Multi Commodity Exchange (MCX) reported that gold futures for October delivery rose by Rs 520, or 0.46 percent, reaching this new peak. Similarly, the December contract advanced by Rs 530, also reflecting a fresh record for the white metal.
Silver prices also followed suit, exhibiting remarkable gains. The December futures for silver reached Rs 1,34,016 per kilogram, marking a rise of Rs 461 or 0.34 percent. March delivery futures further increased to Rs 1,35,397 per kilogram, highlighting a robust demand.
Analysts attribute the ongoing rally in gold and silver to multiple factors. Most notably, the US Federal Reserve’s recent rate cut, geopolitical tensions promoting safe-haven buying, and strong central bank purchases all contributed to this unprecedented surge in bullion prices. Rahul Kalantri, Vice-President of Commodities at Mehta Equities Ltd, stated, “The relentless rally in gold shows no signs of slowing.”
Kalantri noted that the Fed’s recent 25 basis points interest rate cut combined with the potential for additional reductions this year created a favorable outlook for precious metals. The weaker dollar index and declining rupee also provided further support to domestic bullion prices.
Buyers remain upbeat about sustained central bank purchases and strong inflows into exchange-traded funds (ETFs), which enhanced demand for gold and silver. In international markets, gold futures for December delivery even reached USD 3,794.82 per ounce, underlining the global bullish sentiment surrounding precious metals.
Jigar Trivedi, Senior Research Analyst at Reliance Securities, mentioned, “Gold’s record high reflects anticipation of more interest rate cuts by the Federal Reserve.” Market participants are closely monitoring upcoming remarks from Fed Chair Jerome Powell, as well as the release of the Personal Consumption Expenditures (PCE) price index, which serves as the Fed’s preferred inflation gauge.
Concerns over geopolitical instability, particularly stemming from the Russia-Ukraine conflict and tensions in the Middle East, continue to influence safe-haven flows into gold. These factors support investors, preventing sharp price corrections in bullion.
This record-breaking rally showcases not only the strength of gold as a safe-haven asset but also the broader implications for global economic policy. As the market awaits further clarity from the Federal Reserve, gold and silver prices remain commanding attention from investors nationwide.
