Gold prices hit all-time high of ₹1.14 lakh in India
What's the story
Gold prices in India have hit a new all-time high, driven by a global rally and the depreciation of the Indian rupee. Domestic gold futures rose by 0.74% to ₹1.14 lakh per 10gm in early trade on Monday, marking their highest level ever. The surge coincides with international spot prices surpassing $3,800 an ounce for the first time.
International impact
Spot gold jumps by over 1%
At 04:32 GMT, spot gold was up 1.1% at $3,800.09 per ounce while US gold futures for December delivery advanced by 0.6% to $3,830 an ounce. The rise in prices is attributed to a weaker dollar and increased expectations of interest rate cuts by the US Federal Reserve, which have driven investor demand for the precious metal.
Currency impact
Indian rupee's near-record low drives gold prices higher
The Indian rupee's fall to a near-record low of 88.71 per dollar has further fueled domestic gold price surges. Jateen Trivedi, VP Research Analyst at LKP Securities, said that despite minor profit booking earlier, the trend remains firmly positive. Analysts expect this momentum to continue in the near term due to safe-haven demand, central bank buying, and ongoing currency weakness.