Gold prices surged to fresh all-time highs on Tuesday, with domestic futures crossing the 1.10 lakh mark for the first time.
On the Multi Commodity Exchange (MCX), December gold futures rose 458, or 0.41%, to 1,10,047 per 10 grams, while the October contract touched a lifetime peak of 1,09,000, gaining 482.
The rally in India tracked global trends. On Comex, gold futures jumped to a record USD 3,694 an ounce, fueled by a weaker US dollar and growing bets on US interest rate cuts.
The trigger was last week’s weak US jobs report, which strengthened expectations that the Federal Reserve will begin cutting rates at its September 16-17 meeting, with markets now factoring in up to three cuts this year.
“Gold hit a fresh high, supported by mounting expectations of Fed rate cuts. The weak US jobs data has led markets to price in three rate cuts in 2025, starting with a 25-bps cut next week,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Darshan Desai, CEO of Aspect Bullion & Refinery, added that the rally’s near-term strength will hinge on revised US jobs data due later today and inflation numbers later this week. Continued ETF inflows, strong central bank buying, and political pressure on the Fed are also lending support.
A softer dollar, central bank demand, and hopes of easier monetary policy have combined to give gold its sharpest upswing in months, pushing Indian futures to historic highs.