Gold crosses ₹1.10 lakh per 10 grams for first time in India

Gold prices scaled all-time high in India on Tuesday (September 9), in line with the international trend, as expectations of interest rate cuts by the US Federal Reserve and a weaker dollar boosted demand for the precious metal.On the Multi Commodity Exchange (MCX), gold futures for December delivery rose ₹458 or 0.41% to hit an all-time high of ₹1.10 lakh per 10 grams. The most-traded October contract also touched a record of ₹1.09 lakh per 10 grams, gaining ₹482 or 0.44%.

In overseas markets, Comex gold futures for December delivery advanced to an all-time high of ₹3,694.75 per ounce.

Analysts attributed the surge to soft US labour market data, which has heightened expectations of rate cuts by the US Federal Reserve.“Gold hit an all-time high, supported by mounting expectations of Federal Reserve interest rate cuts through year-end. Weak US jobs report last Friday led markets to price in three rate cuts this year, including a 25 basis-point cut at the Fed’s policy meeting next week,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.

Darshan Desai, CEO of Aspect Bullion & Refinery, said, “Gold prices are climbing to new highs, driven by expectations of faster interest rate cuts from the US Federal Reserve next week. The short-term sustainability of this rally will largely depend on the revised US jobs data due later today, as well as upcoming inflation figures later this week.”

Rahul Kalantri, VP Commodities at Mehta Equities, noted that weak US employment data, a softer dollar, and declining US Treasury yields were key drivers.

Aksha Kamboj, Vice President of the India Bullion & Jewellers Association (IBJA), added that global uncertainty and investor demand continue to keep gold attractive as a safe-haven asset.