On Tuesday, gold prices saw a notable increase of ₹119 in India’s domestic futures market, pushing them close to an all-time high of ₹1,10,298 per 10 grams. This upward trend mirrors strong global market sentiment as investors eagerly await a potential U.S. Federal Reserve rate cut later this week.
Specifically, on the Multi Commodity Exchange (MCX), the October delivery gold futures contract climbed by ₹119, or 0.10%, reaching ₹1,10,298 per 10 grams. This comes after the contract briefly hit a new record of ₹1,10,330 per 10 grams in the preceding trading session.
Similarly, the December gold contract on the MCX also saw an advance, rising by ₹109 to ₹1,11,346 per 10 grams, after setting its own fresh peak of ₹1,11,350 per 10 grams on Monday.
Market analysts specializing in commodities indicate that gold’s consistent upward trajectory is largely driven by traders betting on the Federal Reserve’s likely interest rate reduction in its September 17 policy announcement. Furthermore, investors are closely watching for any hints regarding additional monetary easing measures throughout the remainder of the year.
Internationally, December delivery gold futures soared to an unprecedented $3,728.32 per ounce. This robust performance is primarily supported by the anticipation of a more relaxed U.S. monetary policy and a sustained appetite for safe-haven assets amidst ongoing global economic uncertainties.
An expert commented, "Gold has been attracting significant investor attention in recent weeks, breaking multiple records in both domestic and international arenas. While some degree of profit-taking at elevated levels is always a possibility, the prevailing market outlook remains decidedly optimistic."