Gold and Silver Soar Amid Fed Rate Cut Expectations

Gold and silver prices surged to unprecedented levels on Monday, propelled by disappointing US labor statistics and increasing anticipation of an interest rate cut by the Federal Reserve. The Multi Commodity Exchange (MCX) recorded gold futures for October climbing by Rs 452 or 0.42% to a lifetime high of Rs 1,08,180 per 10 grams.

Similarly, December contracts breached the Rs 1.09 lakh threshold, while silver futures gained substantially, rallying by Rs 1,703 to hit Rs 1,26,400 per kilogram. The ongoing global market rally, driven by weak non-farm payroll numbers, has strengthened the chance of rate cuts, effectively supporting precious metals.

Investors are eyeing this week's US macroeconomic data for further guidance. Despite the unprecedented heights, spot market profit-booking led to a slight retreat in prices in India. Nonetheless, gold continues to benefit from heightened demand in global markets, reflecting its status as a safe-haven asset in times of economic uncertainty.

(With inputs from agencies.)