Gold Prices Surge to All-Time High Amid Expectations of US Federal Reserve Interest Rate Cut

Strategic Insights -

The gold market witnessed significant gains on Tuesday, with prices touching an all-time high of Rs 1,10,312 per 10 grams in the domestic futures market. The strong global cues, accompanied by growing expectations of a US Federal Reserve interest rate cut next week, have driven the surge in gold prices. According to traders, the weak US labor market data has strengthened the case for monetary policy easing, putting pressure on the dollar and boosting demand for the safe-haven asset.

Key Takeaways:

  • Gold prices in the domestic futures market surged Rs 723 to touch an all-time high of Rs 1,10,312 per 10 grams, following strong global cues.
  • The weak US labor market data has strengthened the case for monetary policy easing, putting pressure on the dollar and boosting demand for gold.
  • Jigar Trivedi, Senior Research Analyst at Reliance Securities, stated that gold hit a fresh all-time high, supported by mounting expectations of Federal Reserve interest rate cuts through year-end.
  • The dollar index was trading at 97.33, lower by 0.12 per cent, amid expectations of a US Federal Reserve interest rate cut.
  • Comex gold futures for December delivery rose to hit an all-time high of USD 3,698.02 per ounce, while spot gold appreciated to hit a record high of USD 3,658.38 per ounce.
  • Renisha Chainani, Head - Research at Augmont, stated that gold has reached new all-time highs above USD 3,695 per ounce, driven by investor confidence in a Fed interest rate cut at its September monetary policy meeting.
  • Globally, exchange-traded funds (ETFs) added 53 tonnes of gold in August, worth roughly USD 5.5 billion, as assets under management by ETFs closed at a month-end high.

Statistics:

  • Gold prices touched an all-time high of Rs 1,10,312 per 10 grams in the domestic futures market.
  • The dollar index was trading at 97.33, lower by 0.12 per cent.
  • Comex gold futures for December delivery rose to USD 3,698.02 per ounce.
  • Spot gold appreciated to USD 3,658.38 per ounce.
  • Exchange-traded funds (ETFs) added 53 tonnes of gold in August, worth roughly USD 5.5 billion.

Sources:

  • Jigar Trivedi, Senior Research Analyst at Reliance Securities
  • Renisha Chainani, Head - Research at Augmont
  • "Gold hit a fresh all-time high, supported by mounting expectations of Federal Reserve interest rate cuts through year-end." - Jigar Trivedi, Senior Research Analyst at Reliance Securities
  • "Gold has reached new all-time highs above USD 3,695 per ounce to start the week on a strong bullish note." - Renisha Chainani, Head - Research at Augmont
  • Orissa TV
  • Published by HT Digital Content Services with permission from Orissa TV.