Gold prices cross ₹1.11 lakh per grams in India on strong global cues; US inflation in focus

Gold prices breached ₹1.11 lakh per 10 grams on Monday (September 22) as investors reacted to strong global cues and positioned ahead of key US inflation data and comments from several Federal Reserve officials scheduled this week.

On the Multi Commodity Exchange (MCX), December gold futures surged ₹799, or 0.72%. Meanwhile, October delivery, the most actively traded contract, gained ₹761, or 0.69%, to ₹1,10,608 per 10 grams.

Last week, the October contract had touched a fresh high of ₹1,10,666 per

10 grams.

Globally, spot gold rose 0.2% to $3,691.53 per ounce, while US December gold futures climbed 0.6% to $3,727.40 an ounce. The metal had earlier touched an all-time high of $3,707.40 per ounce.

Experts attribute the firm trend in bullion prices to a combination of dovish monetary policy and persistent geopolitical tensions. The US Federal Reserve last week cut interest rates by 25 basis points and signaled potential further easing.

Markets are now focusing on a series of speeches by at least a dozen Fed officials this week, including Chair Jerome Powell, and the upcoming US core Personal Consumption Expenditure (PCE) data, the central bank’s preferred inflation gauge.

“Gold is back on the doorstep of the $3,700 an ounce level and new highs could be reached this week if US macro data continues to support the dovish Fed narrative,” said Tim Waterer, Chief Market Analyst at KCM Trade.

Darshan Desai, CEO of Aspect Bullion & Refinery, added, “With the auspicious beginning of Navratri, domestic markets may see some buying traction. Despite the absence of strong immediate triggers, ongoing global economic uncertainties continue to support bullion prices.”

According to Manav Modi, Analyst – Precious Metals, Motilal Oswal Financial Services, gold’s current strength reflects a mix of geopolitical tensions, Fed rate cuts, and market expectations of two further rate reductions this year — in October and December — with probabilities of 93% and 81%, respectively.

The market is closely watching US GDP, inflation, and preliminary PMI data for further direction.

Bullion has surged over 40% this year, driven by central bank buying, monetary policy easing, and broader economic uncertainty, highlighting its appeal as a hedge in a low-interest-rate environment.

-With agencies inputs