Gold Prices Surge Rs 723 To Hit A Record High Of Rs 1,10,312/10 G

New Delhi- Gold prices on Tuesday surged Rs 723 to touch an all-time high of Rs 1,10,312 per 10 grams in the domestic futures market, tracking strong global cues amid growing expectations of a US Federal Reserve interest rate cut next week.

Traders said weak US labour market data has strengthened the case for monetary policy easing, putting pressure on the dollar and boosting demand for the safe-haven asset.

Also, the most traded gold futures for October delivery jumped Rs 982 or 0.9 per cent to hit a fresh peak of Rs 1,09,500 per 10 grams on the Multi Commodity Exchange (MCX).

“Gold hit a fresh 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,” Jigar Trivedi, Senior Research Analyst at Reliance Securities, said.

Investors are now awaiting the US Producer Price Index and Consumer Price Index data, due later this week, which could provide further guidance on the Federal Reserve's (Fed) next steps for the interest rate cycle, Trivedi added.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 97.33, lower by 0.12 per cent.

In the overseas markets, Comex gold futures for December delivery rose to hit an all-time high of USD 3,698.02 per ounce. Also, spot gold appreciated to hit a record high of USD 3,658.38 per ounce.

“Gold has reached new all-time highs above USD 3,695 per ounce to start the week on a strong bullish note. The action builds on last week's surge as investors become more confident that the Fed would lower interest rates at its September monetary policy meeting, a move that markets now regard as almost certain after a run of poor US job market data,” said Renisha Chainani, Head – Research at Augmont.

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