Weak US dollar, Fed rate-cut hopes, and global economic worries fuel sixth straight session of gains
Chennai: Gold prices in the international market crossed $4,250 per ounce, pushing rates on the Multi Commodity Exchange (MCX) to a fresh high of `1,28,457 per 10 grams. However, a dip in premiums due to slowing demand and a stronger rupee led to a cooling-off in Delhi’s spot market prices.
Globally, gold rose to $4,254 per ounce as investors speculated that the US Federal Reserve might proceed with interest rate cuts in October and December.“Gold prices extended their rally to new highs amid growing expectations of an imminent Federal Reserve rate cut following Chair Jerome Powell’s remarks on labour market weakness. The prospect of lower interest rates and a weaker dollar boosted gold’s appeal as a safe-haven asset. Rising US-China trade tensions over rare earth exports and potential US countermeasures added to geopolitical uncertainty, while the ongoing US government shutdown further weighed on investor sentiment,” said Ajay Kedia, MD of Kedia Commodities.
Although MCX gold prices touched a new record, gains were capped as the rupee strengthened amid optimism over a possible trade deal between India and the US. In the Delhi spot market, both gold and silver prices eased from the previous session’s levels.
Gold was priced at Rs 1,31,000 per 10 grams on Thursday, down from Rs 1,32,000 on Wednesday, while silver fell to Rs 1,84,000 per kg from Rs 1,88,000. With prices surging sharply in recent days, demand remained subdued, and premiums — which had earlier risen due to high demand and limited supply — dropped on Thursday.“The stronger rupee also limited the upward movement of precious metals,” said Surender Jain of the Delhi Bullion Association.
