Gold Hits All-Time High of Rs 1,12,750/10g Amid Fed Easing
Gold prices surged to an unprecedented Rs 1,12,750 per 10 grams as expectations of US Federal Reserve rate cuts and global dynamics drive demand for safe-haven assets.
Duggar Samvad 
Gold prices reached a historic peak of Rs 1,12,750 per 10 grams on Tuesday, driven by strong global trends and speculation surrounding the US Federal Reserve’s monetary policy. This significant jump of Rs 520 in the domestic futures market reflects not only heightened investor interest but also broader market dynamics in response to global economic cues.
On the Multi Commodity Exchange (MCX), gold futures for October delivery rose by 0.46%, marking a new all-time high. Similarly, the December delivery contracts surged by Rs 530, demonstrating the powerful momentum in the gold market.
Silver prices mirrored this surge, achieving a record high of Rs 1,34,016 per kilogram for December delivery futures. The March next year delivery price for silver also saw a rise, reaching Rs 1,35,397 per kilogram on the MCX, showcasing a buoyant market for precious metals.
Analysts attribute this relentless rally in bullion to several interconnected factors. The US Federal Reserve recently implemented its first rate cut of the year, which has fueled expectations for additional easing in the future. This speculation has led to increased safe-haven buying amidst ongoing geopolitical tensions.
“The rally in both gold and silver shows no signs of slowing down,” noted Rahul Kalantri, Vice-President of Commodities at Mehta Equities Ltd. “Both metals reached record highs this week, underlined by a favorable market environment.”
Kalantri emphasized that the recent 25 basis point interest rate cut by the Fed, combined with further expected easing this year, has bolstered market confidence. A weaker rupee and subdued dollar index have also encouraged domestic buying pressure on bullion.
The factors driving gold’s rise also include persistent central bank acquisitions and strong inflows into exchange-traded funds (ETFs), which have sustained upward momentum in precious metals. The global gold futures market reflects this trend, with prices for December delivery touching USD 3,794.82 per ounce.
Trivedi highlighted that traders closely anticipate remarks from Fed Chair Jerome Powell regarding the economic outlook, which could provide insights into future monetary policies. The upcoming release of the Personal Consumption Expenditures price index later this week is another event that could influence market sentiment.
Investors continue to weigh geopolitical risks, particularly surrounding the long-standing Russia-Ukraine conflict and escalating tensions in the Middle East. These factors contribute to heightened safe-haven buying, preventing significant corrections in bullion prices, even amid record highs.
As the gold market remains resilient amid fluctuating economic conditions and consumer demand, investors are keenly monitoring movements in both local and international markets to navigate potential opportunities or challenges ahead.
