Gold has reached an all-time high, climbing to Rs 1,12,750 per 10 grams in the Indian futures market on Tuesday. This surge of Rs 520, or 0.46 per cent, comes amid significant global cues and the anticipation of further rate cuts by the US Federal Reserve. Investors eagerly await remarks from Fed Chair Jerome Powell regarding interest rates, which could influence market movements.
On the Multi Commodity Exchange (MCX), gold futures for October delivery achieved this lifetime peak due to a robust trend globally. Similarly, December contracts followed suit, surging Rs 530 to Rs 1,13,750 per 10 grams, establishing yet another record.
Accompanying gold’s ascent, silver prices also surged, with futures for December delivery rising Rs 461, or 0.34 per cent, to a record high of Rs 1,34,016 per kilogram. March contracts for silver further escalated, marking Rs 1,35,397 per kilogram, showcasing its strongest performance in nearly 15 years.
Experts attribute gold’s relentless rally to several critical factors, primarily the US Federal Reserve’s recent decision to implement its first rate cut of the year. The prevailing mood anticipates additional easing, thus fostering safe-haven demand influenced by ongoing geopolitical tensions. Central bank acquisitions maintain momentum in the market.
Rahul Kalantri, Vice-President of Commodities at Mehta Equities Ltd, stated, “The rally in gold and silver shows no signs of slowing, with both metals soaring to fresh records. Gold surged to lifetime highs while silver reached its strongest level in nearly 15 years.” He emphasized that the Fed’s 25 basis point interest rate cut combined with prospects of further easing by year-end positively influenced market sentiment.
Additionally, a weaker dollar index and a depreciating rupee propelled domestic bullion prices higher. Kalantri asserts the importance of sustained central bank purchases and strong inflows into exchange-traded funds (ETFs), coupled with safe-haven buying, in driving precious metal prices upward.
In global markets, gold futures for December delivery also rose to record levels, reaching USD 3,794.82 per ounce. Jigar Trivedi, Senior Research Analyst at Reliance Securities, noted, “Gold hit a fresh record high on the back of expectations for more interest rate cuts from the Federal Reserve this year.” He added that the Fed’s recent decision, alongside signals of further reductions due to a weakening labor market, encourages traders to speculate on nearly two additional 25 basis point cuts during the remaining meetings this calendar year.
Despite minor fluctuations, silver futures for December delivery slightly dipped to USD 44.19 per ounce. Experts highlight that traders remain cautiously optimistic, eagerly awaiting Fed Chair Jerome Powell’s insights on economic projections, which could reshape the trajectory of monetary policy.
Investors express concern about geopolitical risks linked with the ongoing Russia-Ukraine conflict and tensions in the Middle East. These factors amplify safe-haven flows, which may prevent sharp corrections in bullion prices despite the elevated levels.
As economic conditions evolve, the precious metals market will likely remain a focal point for investors seeking stability amid uncertain financial landscapes.
