Investor demand is soaring amid U.S. Fed cut bets and safe-haven rush.
Gold continues its remarkable rally with prices reaching another record high, as gold futures for December delivery climbed for a tenth time in 13 sessions.
Gold prices climbed above ₹1.10 lakh per 10 grams for the first time in India on Tuesday.
Growing expectations of a U.S. Federal Reserve rate cut and a weaker dollar lifted investor demand for the safe-haven asset. Analysts expect a 50-basis-point rate cut at the September FOMC meeting, amid weakening job data.
Last week, Goldman Sachs said that gold prices may surge to nearly $5,000 per ounce if the Federal Reserve’s independence is compromised and investors shift a small portion of their holdings from Treasuries into bullion.
“A scenario where Fed independence is damaged would likely lead to higher inflation, lower stock and long-dated bond prices, and an erosion of the dollar’s reserve-currency status,” the investment bank’s analysts noted, according to a Bloomberg report.
On the Multi Commodity Exchange (MCX), gold futures for December delivery climbed ₹458, or 0.41%, to a fresh all-time high of ₹1.10 lakh per 10 grams. Similarly, the most active October contract surged ₹482, or 0.44%, to reach a record level of ₹1.09 lakh per 10 grams.
In global markets, Comex gold futures for December delivery also rallied, hitting an all-time peak of $3,694.75 per ounce.
Stock Watch
Companies dealing with gold traded mixed on Tuesday. Among the top gainers, Rajesh Exports shares closed 3.1% higher at ₹197.22, Muthoot Finance ended trade 1.4% higher at ₹2,941, while Thangamayil Jewellery was also up 1.4% at ₹2,212.
PC Jeweller (-1.92%), Manappuram Finance (-0.24%), and Goldiam International (-1.98%) were among the decliners.
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