Mumbai: Gold prices soared to unprecedented levels on Tuesday, breaching the ₹1.10 lakh mark in the domestic futures market for the first time.
On the Multi Commodity Exchange (MCX), December gold futures rose by ₹458, or 0.41%, to settle at ₹1,10,047 per 10 grams. The actively traded October contract also touched a record ₹1,09,000 per 10 grams, gaining ₹482.
The sharp rally in Indian markets reflected global trends. On Comex, gold futures surged to a lifetime high of USD 3,694 an ounce, supported by a weaker US dollar and expectations of monetary easing by the Federal Reserve.
The surge followed weaker-than-expected US jobs data released last week, which strengthened market expectations of interest rate cuts. Investors are now anticipating three cuts this year, starting with a likely 25 basis-point reduction at the Fed’s September 16–17 policy meeting.
Market analysts said the combination of a softer dollar, sustained central bank buying, strong ETF inflows, and prospects of a dovish Fed have propelled gold into its steepest rally in months.
Industry experts added that the sustainability of this rally would depend on revised US employment numbers and upcoming inflation data later this week, which could determine the pace of rate cuts.
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