Gold hits record high of ₹1.27 lakh per 10gm
What's the story
Gold prices on the Multi Commodity Exchange (MCX) hit a new all-time high of over ₹1.27 lakh per 10gm today. The surge in gold prices is attributed to rising international bullion prices amid renewed US-China trade tensions and expectations of further interest rate cuts by the US Federal Reserve. The yellow metal opened 0.52% higher at ₹1,26,915 per 10gm against its previous close of ₹1,26,256 level.
Price surge
Silver prices also surge on MCX
The MCX gold price hit a record high of ₹1,27,500 per 10gm during early trading today. Meanwhile, the MCX silver price opened 0.18% higher at ₹1,59,800 per kg against its previous close of ₹1,59,504 level. Silver prices rose by ₹829 or 0.52%, reaching ₹1,60,333/kg due to safe-haven demand and industrial requirements amid increasing trade tensions between the US and China.
Market reaction
Spot gold climbs to $4,155.99 per ounce
The global market responded similarly, with spot gold climbing 0.4% to $4,155.99 per ounce and US gold futures for December delivery rising 0.3% to $4,174.30. The non-interest-bearing bullion has gained 55% year-to-date, hitting a record high of $4,179.48 on Tuesday. Analysts say investors are turning toward safe-haven assets as renewed geopolitical and trade tensions weigh on the global economic outlook.
Fed influence
Fed chair hints at possible monetary easing
Market sentiment improved after Federal Reserve Chair Jerome Powell hinted at possible monetary easing later this year. He said interest rate decisions would be made on a "meeting-by-meeting" basis, balancing labor market weakness with persistent inflation above target. Markets expect a 25-basis-point rate cut at the upcoming Fed meeting this month, with a similar reduction anticipated in December, Reuters reported.