Gold prices in India surged to an all-time high on Thursday, with the Multi Commodity Exchange (MCX) recording a peak of ₹76,899 per 10 grams, driven by global uncertainties and speculation over potential Federal Reserve rate cuts.
Analysts attribute the historic rise to a mix of dovish stances from central banks, falling bond yields, and intensifying geopolitical tensions. Ajay Kedia, Director of Kedia Advisory, explained the driving forces behind the gold rally.
“MCX gold reached this unprecedented level as major central banks indicated dovish outlooks and lower bond yields boosted demand for non-yielding assets like bullion. Expectations that the Federal Reserve will announce a 25-basis-point rate cut in November have further fueled the momentum,” Kedia said.
Kedia also highlighted geopolitical concerns impacting the market. “Uncertainty around the upcoming US presidential election and renewed Middle Eastern tensions—particularly following Israel’s intensified air strikes on Lebanon—have bolstered gold’s safe-haven appeal.”
Adding to the analysis, Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, noted that international gold prices have also been on the rise. “COMEX gold surged due to declining US Treasury yields and heightened geopolitical tensions, closing 0.5% higher at $2,691.30 per ounce despite a stronger dollar pulling back gains,” Chainwala said.
The upward trend continued on Thursday as COMEX gold touched $2,700.60 per ounce. Chainwala added that market participants are watching US retail sales and jobless data closely for clues on the pace of the Federal Reserve’s easing measures. “Signs of resilience in the US economy are tempering expectations for aggressive rate cuts, though uncertainty remains.”
The confluence of falling bond yields, Middle Eastern unrest, and dovish central bank policies has set the stage for further gains in gold prices.
(Inputs from ANI)