New Delhi, Sep 3: Gold prices rallied Rs 1,000 to touch a fresh record high of Rs 1,07,070 per 10 grams in the local markets on Wednesday amid hopes of Fed easing rates, mounting geopolitical tensions and growing worries around the US economy.
According to the All India Sarafa Association, the precious metal of 99.9 per cent purity had closed at Rs 1,06,070 per 10 grams on Tuesday.
Delhi Market Sees Consecutive Gains
In the Delhi market, gold of 99.5 per cent purity extended the gains for the eighth consecutive session, appreciating Rs 1,000, to hit a fresh record high of Rs 1,06,200 per 10 grams (inclusive of all taxes) on Wednesday. It had settled at Rs 1,05,200 per 10 grams in the previous market session.
Silver Remains Stable
Meanwhile, silver prices traded flat at Rs 1,26,100 per kilogram (inclusive of all taxes) on Wednesday, its all-time high level, as per the association. In the international markets, spot gold climbed to hit an all-time high of USD 3,547.09 per ounce.
Experts Cite Fed Rate Cuts & Geopolitics
"Gold continues to rise higher as safe-haven demand stayed strong amid hopes of Fed easing rates, mounting geopolitical tensions and growing worries around the US economy," Chintan Mehta, CEO, Abans Financial Services, said.
"Later this week, OPEC+ will hold a meeting, while Russia supplies concerns persist as a recent Ukrainian attack hurt 17 per cent of Russian oil processing capacity, due to which oil prices have bounced back from recent lows," Mehta said, adding that "this could weigh in inflation number, weakening dollar and supporting gold".
US Economic Factors Support Gold Rally
N S Ramaswamy, Head of Commodity and CRM, Ventura, said, "The upside march of the precious metal extends beyond being only a hedge against inflation, as the US Fed is on the stage to start cutting interest rates with hotter inflation.
"Expectations of a rate cut by the US Federal Reserve rate cut this month and lingering uncertainty over President Donald Trump's tariff policies continue to support the yellow metal," Ramaswamy said.
Global Trade Tensions Add to Safe-Haven Demand
However, spot silver traded 0.11 per cent lower to trade at USD 40.84 per ounce in New York.
"The market focus has shifted to the this week's US unemployment data and non-farm payrolls due to released on Friday, which, along with expectations of a rate cut, are likely to keep gold supported. In this hot gold rally, profit booking wouldn't come up soon," he added.
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"The US administration announced its intention to request an expedited ruling from the Supreme Court regarding tariffs after a US appeals court deemed them illegal last week. Growing uncertainty and potential trade tensions in the market bolstered demand for safe-haven metal," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.
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