Gold prices hit record ₹1.1L: What's behind the surge?
What's the story
Gold prices have hit a new all-time high in India, crossing the ₹1.1 lakh mark for the first time ever. The rise was seen on the Multi Commodity Exchange (MCX), where December delivery gold futures surged by ₹458 or 0.41% to reach ₹1,10,047 per 10gm. The October contract also hit a new peak at ₹1,09,000 per 10gm with a gain of ₹482.
International impact
Global gold prices surge
The rise in India's gold prices is in line with global trends. Comex gold futures hit a new high of $3,694 an ounce due to a weaker US dollar and expectations of looser monetary policy. The catalyst for this global trend was last week's US jobs data, which showed weaker-than-expected hiring. This has bolstered hopes that the Federal Reserve will cut rates at its upcoming meeting on September 16-17.
Expert opinions
Experts weigh in on gold's future
Jigar Trivedi, Senior Research Analyst at Reliance Securities, said, "Gold hit a fresh all-time high, supported by mounting expectations of Federal Reserve interest rate cuts through year-end." He added that the weak US jobs report last Friday led markets to price in three rate cuts this year. Darshan Desai, CEO of Aspect Bullion & Refinery, echoed similar sentiments while emphasizing the importance of revised US jobs data and upcoming inflation figures for gold's future performance.