Gold rates in India near ₹1.10 lakh per 10 grams ahead of Fed policy decision

Gold prices traded near all-time high levels in the domestic market on Tuesday (September 16), buoyed by strong global cues and heightened expectations of a US Federal Reserve rate cut this week.

On the Multi Commodity Exchange (MCX), October gold futures rose ₹119, or 0.10%, to ₹1.10 lakh per 10 grams, just shy of the all-time high of ₹1.1 lakh per 10 grams touched a day earlier.

The December contract also advanced ₹109 to ₹1.11 lakh per 10 grams, after setting a fresh peak of ₹1.11 lakh per 10 grams in the previous session.

Globally, December gold futures surged to an unprecedented $3,728.32 per ounce, supported by the prospect of looser US monetary policy and persistent safe-haven demand amid global economic uncertainty.

Market participants said the rally reflects both domestic and international factors.

“Investors are treating gold as a defensive asset during uncertain times,” said Mohit Kamboj, Former National President of the India Bullion and Jewellers Association (IBJA).

He added that a weaker rupee is raising import costs, further pushing local rates higher, while festival and wedding demand could also amplify price movements.

The US Fed’s decision on September 17 remains a key trigger. Traders are watching closely not only for the rate cut itself but also for signals on the pace of monetary easing through the rest of the year.

“A smaller-than-expected cut or hawkish tone could disappoint investors. However, any short-term dip may offer an attractive entry point for long-term buyers,” said Darshan Desai, CEO of Aspect Bullion & Refinery.

While analysts acknowledge the possibility of profit-booking at higher levels, the broader sentiment remains constructive. With inflationary pressures persisting, the dollar under strain, and central banks maintaining a dovish stance, gold continues to shine as a hedge against volatility.

-With PTI inputs