Gold Prices Soar to New Heights Amid Federal Rate Cut Speculations
Gold prices reached record highs in domestic and international markets due to strong anticipation of U.S. Federal Reserve interest rate cuts amid weak U.S. job data. Investors await upcoming U.S. Producer and Consumer Price Index data for further guidance on interest rates, as global tension boosts gold's appeal.
- Country:
- India
On Tuesday, gold prices surged Rs 723 to reach an unprecedented Rs 1,10,312 per 10 grams in the domestic futures market. The rise aligns with global trends as expectations of a U.S. Federal Reserve interest rate cut next week intensify, fueled by lackluster U.S. labor market data.
In the futures market, the most traded gold contract for October delivery saw a significant increase, reaching Rs 1,09,500 per 10 grams on the Multi Commodity Exchange. Analyst Jigar Trivedi from Reliance Securities noted the strong likelihood of multiple rate cuts by the Federal Reserve this year, spurred by Friday's disappointing U.S. jobs report.
Globally, Comex gold futures and spot gold hit record figures, enhancing their appeal as safe-haven assets. The anticipation of U.S. Producer and Consumer Price Index releases adds to market focus, while geopolitical tensions, including potential new sanctions on Russia, further propel the demand for gold.
(With inputs from agencies.)
Google News