New Delhi: Gold prices surged for the sixth straight session on Monday, climbing Rs 1,000 to a new record of Rs 1,05,670 per 10 grams in the national capital,
amid growing expectations of a US Federal Reserve rate cut and robust global demand. According to the All India Sarafa Association, gold of 99.9% purity had already touched a record of Rs 1,04,670 on Saturday. On Monday, gold of 99.5% purity rose by Rs 800 to hit Rs 1,04,800 per 10 grams (inclusive of taxes), up from Rs 1,04,000 in the previous session. Traders attributed the sharp gains to investor preference for safe-haven assets amid uncertainty over the independence of the US Fed and heightened tariff tensions. Silver too rallied sharply, rising Rs 1,000 to hit a fresh lifetime peak of Rs 1,26,000 per kg (inclusive of taxes), after jumping Rs 6,000 to Rs 1,25,000 on Saturday. “Silver hit record high in the domestic markets largely driven by industrial demand in clean energy and electronics supporting with speculative interest driving the price sharply higher. The recent announcement of the US Geological Survey proposing silver as a critical mineral has created a new wave of momentum as well,” said Trivesh D, Chief Operating Officer, Tradejini. On the MCX, October gold futures rose Rs 2,113 (2.03%) to an all-time high of Rs 1,05,937 per 10 grams, while December contracts climbed Rs 1,682 to Rs 1,06,539. Silver futures for December also jumped Rs 3,117 (2.5%) to touch Rs 1,24,990 per kg. “For gold, deteriorating value of the rupee internationally and rising geopolitical tensions have made gold more attractive as a safe haven. Gold crossed Rs 1.05 lakh per 10 grams and silver zoomed near Rs 1.25 lakh per kg on the MCX, which has caused Indian buyers to see some of the highest prices in over 10 years now,” added Trivesh D. In global markets, Comex gold futures (December contract) hit a record USD 3,556.87 per ounce, while spot gold gained 0.65% to USD 3,470.51 per ounce in New York. Spot silver climbed 1.96% to USD 40.47 per ounce, with Comex silver futures breaching USD 41 per ounce, the highest in 14 years. “Spot gold extended its rally, buoyed by increasing expectations of a September rate cut, growing uncertainty around President Donald Trump’s proposed tariffs, and the escalating standoff between the Fed and the Trump administration,” said Kaynat Chainwala, AVP Commodity Research, Kotak Securities. San Francisco Fed President Mary Daly indicated policymakers may soon cut rates, noting that tariff-driven inflation is likely temporary. Chainwala added: “Political and trade uncertainty lingers as a US court ruled that President Trump’s sweeping trade tariffs were illegal, while a decision on whether Lisa Cook can continue her Fed duties is not expected before at least Tuesday.” Looking ahead, investors are watching key US labour market data due this week. “Investors will closely track developments including a series of key US labour market releases this week, including job openings, ADP employment, and non-farm payrolls, which could influence the Fed’s monetary policy trajectory,” said Chintan Mehta, CEO, Abans Financial Services. (With inputs from PTI)
