Gold Prices Soar Amid Global Uncertainties and Rate Cut Expectations

Gold prices have surged to unprecedented levels in both domestic and global markets, a result of speculators taking fresh positions in response to strong international trends. On the Multi Commodity Exchange, December gold futures climbed by Rs 527 to settle at Rs 1,21,020 per 10 grams, following robust safe-haven demand.

This upward trajectory in gold and silver prices, with gold previously reaching an all-time high of Rs 1,23,677 per 10 grams and silver touching Rs 1,53,388 per kilogram, is largely attributed to global economic uncertainties and potential interest rate cuts by the US Federal Reserve. These factors continue to drive market dynamics worldwide.

Jigar Trivedi, a Senior Research Analyst at Reliance Securities, emphasized that these price movements reflect ongoing concerns over inflation and labor market risks discussed during the recent Federal Open Market Committee meeting. Furthermore, the ongoing US government shutdown has cast additional uncertainty over economic indicators, bolstering the demand for gold as a secure investment.