Gold Hits Record High of Rs 1,12,750 per 10 Grams on Fed Easing Hopes and Global Cues
Domestic bullion surges as silver follows suit; Fed rate cut and safe-haven demand fuel rally
NEW DELHI, Sept 23: Gold continued its record breaking rally on Tuesday, soaring Rs 520 to reach an all-time high of Rs 1,12,750 per 10 grams in the domestic futures market. The surge was supported by global trends, expectations of further US Federal Reserve rate cuts, and sustained safe-haven buying ahead of Fed Chair Jerome Powell’s remarks.
On the Multi Commodity Exchange (MCX), gold futures for October delivery jumped 0.46% to Rs 1,12,750 per 10 grams, while the December contract rose Rs 530 to Rs 1,13,750 per 10 grams, marking another lifetime high.
Silver also scaled new peaks, with December futures climbing Rs 461 to Rs 1,34,016 per kilogram, and March 2026 contracts rallying Rs 508 to Rs 1,35,397 per kg.
Analysts attributed the rally to the Fed’s recent 25 basis points rate cut and expectations of further easing by year-end. “The Fed’s interest rate cut, a subdued dollar index, and a weaker rupee have boosted domestic bullion prices, while central bank purchases, strong ETF inflows, and geopolitical tensions continue to drive safe-haven demand,” said Rahul Kalantri, Vice-President of Commodities at Mehta Equities Ltd.
Overseas, gold futures for December delivery climbed to a record USD 3,794.82 per ounce. Trivedi of Reliance Securities noted that market participants are pricing in nearly two additional 25 basis point rate cuts this year. Meanwhile, silver futures for December delivery eased slightly to USD 44.19 per ounce.
Investors are closely watching Fed Chair Jerome Powell’s comments on the economic outlook and the upcoming Personal Consumption Expenditures (PCE) price index for cues on monetary policy. Heightened geopolitical risks, including the ongoing Russia-Ukraine conflict and tensions in the Middle East, have reinforced safe-haven flows, preventing sharp corrections in precious metals despite elevated levels.
