Gold Scales All-Time High Of Rs 1,12,750/10 g On Fed Easing Bets, Global Cues

Gold prices surged Rs 2,200 to hit a fresh peak of Rs 1,16,200 per 10 grams in the national capital on Monday buoyed by strong global cues as investors awaited key commentary from US Fed officials for policy direction.

According to the All India Sarafa Association, the precious metal of 99.9 per cent purity had closed at Rs 1,14,000 per 10 grams on Friday.

In the local bullion market, gold of 99.5 per cent purity rallied Rs 2,150 to hit a record high of Rs 1,15,650 per 10 grams (inclusive of all taxes). It had settled at Rs 1,13,500 per 10 grams in the previous market session.

"Both gold and silver traded at record levels in the domestic markets, tracking the bullish trend in international markets.

"A dovish signal from the US Federal Reserve (Fed) suggests that two additional rate cuts are likely by the end of this year, which could limit gains in the US dollar and Treasury yields while bolstering precious metal prices," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.

In addition, a strong inflow into exchange-traded funds as well as continued interest from central banks have also contributed to the rise in bullion prices, Gandhi added.

The precious metal prices have added Rs 37,250 per 10 grams or 47.18 per cent in the current calendar year, climbing from Rs 78,950 per 10 grams on December 31, 2024.

Meanwhile, silver prices skyrocketed by Rs 4,380 to hit an all-time high of Rs 1,36,380 per kilogram (inclusive of all taxes) on Monday. The white metal had ended at Rs 1,32,000 per kg on Friday, as per the Association.

So far in this year, silver prices have zoomed Rs 46,680 per kilogram or 52.04 per cent, rallying from Rs 89,700 per kg on December 31, 2024.

On the global front, spot gold rose more than 1 per cent to hit a record peak of USD 3,728.43 per ounce.

"Spot gold surged further to a fresh all-time high of USD 3,728 per ounce as investors await remarks from several Federal Open Market Committee (FOMC) officials later in the day and Fed Chair Jerome Powell's key speech on Tuesday for additional policy guidance," said Kaynat Chainwala, AVP Commodity Research, Kotak Securities.

Praveen Singh, Head of commodities and currencies at Mirae Asset ShareKhan, said, "Investors will closely monitor Fed Governor Stephen Miran's speech at the Economic Club of New York. US PMIs data report will be released on Tuesday which will provide further insights on the monetary policy outlook." Spot silver was trading 1.19 per cent higher at USD 43.61 per ounce. It hit an intra-day high of USD 43.80 per ounce.

"Strong fundamentals supported silver prices, with tight supply helping maintain upward momentum. On the demand side, robust consumption from the solar, electric vehicle, and electronics sectors provided additional support," said Jigar Trivedi, Senior Research Analyst at Reliance Securities.