Gold Prices Hit Record ₹1,10,563 per 10 Grams on Fed Cut Hopes and Global Tensions

New Delhi, September 16 – On Tuesday, gold futures in India advanced to all-time highs with strong buying. The October contracts on the Multi-Commodity Exchange (MCX) added ₹384 or 0.34% to ₹1,10,563 per 10 grams, marking a day of trading above the previous all-time high. Similarly, the December futures added ₹418 or 0.37% to ₹1,11,655 per 10 grams, again moving above the all-time levels.

Weak Dollar and Falling Yields Boost Gold

Global signals triggered the increase, as the US dollar fell and US Treasury yields fell. The dollar index was lower by 0.34% at 96.97, making bullion more attractive for the global investor. In the international focus, gold futures saw an all-time high of USD 3,736.97 per ounce, backing gold’s case as a haven ahead of an important meeting with the US Federal Reserve.

Fed Rate Cut Expectations in Focus

Markets are eagerly awaiting what the Fed will do, as a 25-bps cut is nearly fully priced in. Commentary coming from Fed Chair Jerome Powell will be awaited for signs of where policy will go, while US President Donald Trump has publicly pushed for even lower rates. In general, lower rates should support gold prices by lowering the opportunity cost of holding an asset that doesn’t pay interest, like gold.

Geopolitical Tensions Add to Safe-Haven Demand

Geopolitical instability made things worse. A US appeals court stood in the way of Trump’s plan to remove Fed Governor Lisa Cook, bringing up conversations about the independence of a central bank. Moreover, gold’s attractiveness as a safe-haven was boosted by inflation risks, including the potential for tariffs against Europe, China, and India, and developments in the ongoing war in the Middle East and Ukraine.

Outlook

Market observers indicate that gold will continue to be in focus as participants and investors await US retail sales and industrial production data to signal metrics for direction. Monetary policy changes and geopolitical risk continue to drive market sentiment, and bullion will likely rise in the near term.

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