Gold Price Surges Rs 1,800 To Rs 1.15 Lakh Per 10 Gram In Delhi
Gold price surged Rs 1,800 to touch a fresh peak of Rs 1,15,100 per 10 grams in the national capital on Tuesday amid a weak US dollar and growing expectations of rate cut by the Federal Reserve.
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New Delhi:
Gold prices jumped Rs 1,800 to reach a new record high of Rs 1,15,100 per 10 grams in Delhi on Tuesday, driven by a weakening US dollar and increasing anticipation of interest rate cuts by the Federal Reserve.
The All India Sarafa Association reported that precious metal of 99.5 per cent purity increased by Rs 1,800 to achieve an unprecedented Rs 1,14,600 per 10 grams (including all taxes).
In the previous trading session of the local bullion market, gold of 99.9 per cent and 99.5 per cent purity had decreased by Rs 500 each, closing at Rs 1,13,300 and Rs 1,12,800 per 10 grams respectively.
"Tuesday saw gold hitting another historic high as the weakened US dollar and growing expectations for multiple Federal Reserve rate cuts continue to drive this rally. The dollar index has fallen to its lowest point in ten weeks, providing ongoing support for precious metal price increases," explained Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities.
Additionally, silver prices rose by Rs 570 to reach a record high of Rs 1,32,870 per kilogram (inclusive of all taxes) on Tuesday, up from Monday's closing price of Rs 1,32,300 per kg.
"The rally has gained additional momentum from US President Donald Trump's increasing pressure on the Federal Reserve to implement larger interest rate cuts at the upcoming FOMC policy meeting.
"Recent disappointing employment data combined with President Trump's influence has led traders to place stronger bets on more aggressive Federal Reserve rate cuts," Gandhi further noted.
The dollar index, which measures the greenback against six major currencies, declined by 0.28 per cent to 97.03, further boosting bullion prices.
Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities stated, "Traders continue maintaining long positions with the key drivers being the anticipated dovish Fed stance and ongoing trade negotiations between the US, India, and China." In international markets, spot gold climbed to a fresh high of USD 3,698.94 per ounce.
"Gold is trading higher ahead of the US Fed's two-day policy meeting beginning later today. The Fed is widely expected to cut interest rates by 25 basis points on Wednesday, the first reduction since December, with markets almost certain that this easing cycle will extend into next year," said Renisha Chainani, Head - Research at Augmont.
Spot silver was trading 0.10 per cent higher at USD 42.72 per ounce.
"Traders will closely monitor the Fed's projections this week and Fed Chair Jerome Powell's press conference for indications about future policy direction.
"US macroeconomic indicators including industrial production and retail sales expected later today will also be carefully examined by investors to gain better insights into the strength of the economy," she added.
Chintan Mehta, Chief Executive Officer at Abans Financial Services noted, "Geopolitical risks and ongoing tariff disputes are enhancing safe-haven demand. These various factors are keeping investors anchored to gold as a hedging instrument." PTI HG ANU