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What is the story about?
Gold prices in India surged to all-time highs on Tuesday (September 23), crossing the ₹1.12 lakh mark for 10 grams of 24-carat gold. The sharp rise comes amid festive-season demand, a weaker rupee and expectations of further softening in global interest rates.
In comparison, 22-carat gold is trading at about ₹10,480 per gram and 18-carat at ₹8,575 per gram, as per Goodreturns data.
Analysts noted that Navratri-linked buying and anticipation of higher goods and services tax (GST) outlays have kept gold demand firm in India.
“Rather than pullback, gold prices have gone up, and those who have bought gold appear preferring to hold on to their positions,” said Aksha Kamboj, Vice President, IBJA.
She added that the outlook remains positive with strong support at current levels.
Rahul Kalantri, VP Commodities at Mehta Equities, said momentum in bullion is being supported by multiple factors, including central bank purchases, exchange-traded fund (ETF) inflows, and safe-haven demand.
Global gold at record levels
In international markets, gold steadied after touching an all-time high. Spot gold traded at $3,743.39 per ounce as of 0238 GMT, following a record of $3,759.02 an ounce earlier in the session.
US gold futures for December delivery edged up 0.1% to $3,779.50 an ounce.
The rally has been fuelled by expectations of more US rate cuts and a softer dollar, which makes dollar-priced bullion cheaper for overseas buyers. The dollar index slipped 0.1% an ounce.
“The short-term trend is still bullish intact, but on an intraday basis, we do expect a short-term pullback more due to technical factors,” said Kelvin Wong, Senior Market Analyst at OANDA. He noted that gold has key support at $3,710–3,690 an ounce levels.
Fed policy under watch
Investor attention is now on Federal Reserve Chair Jerome Powell’s scheduled speech later on Tuesday (September 23) for signals on the central bank’s policy path.
Last week, the Fed cut interest rates by 25 basis points, citing labour market conditions, while also flagging sticky inflation concerns.
Markets are pricing in a 90% probability of another 25-basis-point cut in October and a 75% chance of a further reduction in December, according to CME FedWatch.
A note from ANZ said slowing economic growth, higher inflation, and a weaker dollar are likely to keep investment demand for gold strong. “Investment demand will continue to drive silver prices as long as gold shines,” it added.
-With Reuters inputs
ALSO READ | Exclusive: Gold prices heading into 'bubble' territory, says JPMorgan's Jamie Dimon
In comparison, 22-carat gold is trading at about ₹10,480 per gram and 18-carat at ₹8,575 per gram, as per Goodreturns data.
Analysts noted that Navratri-linked buying and anticipation of higher goods and services tax (GST) outlays have kept gold demand firm in India.
“Rather than pullback, gold prices have gone up, and those who have bought gold appear preferring to hold on to their positions,” said Aksha Kamboj, Vice President, IBJA.
She added that the outlook remains positive with strong support at current levels.
Rahul Kalantri, VP Commodities at Mehta Equities, said momentum in bullion is being supported by multiple factors, including central bank purchases, exchange-traded fund (ETF) inflows, and safe-haven demand.
Global gold at record levels
In international markets, gold steadied after touching an all-time high. Spot gold traded at $3,743.39 per ounce as of 0238 GMT, following a record of $3,759.02 an ounce earlier in the session.
US gold futures for December delivery edged up 0.1% to $3,779.50 an ounce.
The rally has been fuelled by expectations of more US rate cuts and a softer dollar, which makes dollar-priced bullion cheaper for overseas buyers. The dollar index slipped 0.1% an ounce.
“The short-term trend is still bullish intact, but on an intraday basis, we do expect a short-term pullback more due to technical factors,” said Kelvin Wong, Senior Market Analyst at OANDA. He noted that gold has key support at $3,710–3,690 an ounce levels.
Fed policy under watch
Investor attention is now on Federal Reserve Chair Jerome Powell’s scheduled speech later on Tuesday (September 23) for signals on the central bank’s policy path.
Last week, the Fed cut interest rates by 25 basis points, citing labour market conditions, while also flagging sticky inflation concerns.
Markets are pricing in a 90% probability of another 25-basis-point cut in October and a 75% chance of a further reduction in December, according to CME FedWatch.
A note from ANZ said slowing economic growth, higher inflation, and a weaker dollar are likely to keep investment demand for gold strong. “Investment demand will continue to drive silver prices as long as gold shines,” it added.
-With Reuters inputs
ALSO READ | Exclusive: Gold prices heading into 'bubble' territory, says JPMorgan's Jamie Dimon
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