SRINAGAR: Gold and silver prices in India surged to new record highs on Monday, with MCX Gold December futures reaching Rs 1,16,203 per 10 grams and MCX Silver December futures touching Rs 1,44,179 per kilogram, driven by a weaker US dollar and expectations of further interest rate cuts, according to CNBC TV18.
By 1:10 pm, gold was trading 0.89 percent higher at Rs 1,15,915 per 10 grams, while silver rose 0.81 percent to Rs 1,43,036 per kilogram. The dollar index fell over 0.20 percent, making gold cheaper in overseas currencies and boosting demand.
Internationally, gold also hit an all-time high amid growing market anticipation of US Federal Reserve rate reductions later this year. The CME FedWatch Tool indicated a 90 percent probability of a Fed cut in October and a 65 chance of another cut in December, as per Reuters.
“Gold prices climbed to a record high, driven by growing expectations of further US rate cuts and a weaker dollar. On the trade front, President Donald Trump last week announced a new round of tariffs targeting imported drugs, trucks, and furniture, set to take effect on October 1, adding further uncertainty to the economic outlook,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities, as per NDTV.
Meanwhile, US core PCE inflation data were largely in line with expectations, with the Personal Consumption Expenditures Price Index rising 0.3 percent in August, versus 0.2 percent in July. Year-on-year, PCE inflation increased 2.7 percent, up from 2.6 percent in the previous month.kashmir life