**Gold Continues Record-Breaking Rally, Hits Lifetime High of Rs 1,12,750 per 10 Grams**
*New Delhi:* Gold maintained its record-breaking momentum on Tuesday, rising by Rs 520 to touch an all-time high of Rs 1,12,750 per 10 grams in the domestic futures market. The rally was driven by a strong global trend, fueled by expectations of further rate cuts by the US Federal Reserve and safe-haven buying ahead of Fed Chair Jerome Powell’s remarks.
On the Multi Commodity Exchange (MCX), gold futures for October delivery jumped Rs 520, or 0.46%, reaching a lifetime high of Rs 1,12,750 per 10 grams. Similarly, the December contract advanced by Rs 530, or 0.46%, to Rs 1,13,750 per 10 grams, marking a fresh record.
Silver prices also extended their upward momentum, scaling new highs. The white metal futures for December delivery appreciated by Rs 461, or 0.34%, hitting a record high of Rs 1,34,016 per kilogram. Silver for March next year delivery rallied by Rs 508, or 0.37%, touching a lifetime high of Rs 1,35,397 per kg on the MCX.
**Factors Driving the Rally**
Analysts attribute the relentless rally in bullion to a combination of factors, including the US Federal Reserve’s first rate cut of the year, the likelihood of further easing, safe-haven demand due to geopolitical tensions, and sustained central bank purchases.
Rahul Kalantri, Vice-President of Commodities at Mehta Equities Ltd, said, “The rally in gold and silver showed no signs of slowing, with both metals soaring to fresh records. Gold surged to lifetime highs while silver reached its strongest level in nearly 15 years.”
Kalantri noted that the Fed’s 25 basis points interest rate cut and prospects of more easing by year-end boosted market sentiment. “A subdued dollar index and a weaker rupee provided further impetus to domestic bullion prices,” he added.
“Persistent central bank purchases, strong ETF inflows, and safe-haven buying further fuelled the precious metals’ strength,” Kalantri explained.
**Global Market Trends**
In overseas markets, gold futures for December delivery rose to a record peak of USD 3,794.82 per ounce.
“Gold hit a fresh record high, supported by hopes of more interest rate cuts from the Federal Reserve this year. The Fed delivered its first rate cut of the year last week and signaled further reductions ahead as the labour market weakens,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
He added, “This has prompted market participants to price in almost two more 25 basis point reductions at the remaining meetings this year.”
Meanwhile, silver futures for December delivery slipped marginally to USD 44.19 per ounce.
Trivedi mentioned that traders are now awaiting Fed Chair Jerome Powell’s remarks on the economic outlook later in the day, along with Friday’s release of the Personal Consumption Expenditures (PCE) price index — the Fed’s preferred inflation gauge — for further direction on the monetary policy trajectory.
**Geopolitical Risks Support Safe-Haven Demand**
Investors also highlighted that geopolitical risks stemming from the prolonged Russia-Ukraine war and ongoing conflicts in the Middle East have heightened safe-haven flows. This has prevented sharp corrections in bullion prices despite elevated levels.
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*Disclaimer: This story is from a syndicated feed. No changes have been made except the headline.*
https://www.freepressjournal.in/business/record-breaking-rally-gold-rises-520-to-touch-all-time-high-of-112750-per-10-grams-buoyed-by-strong-global-trends