Gold rate today: Gold prices on Tuesday jumped by ₹723, reaching a record high of ₹1,10,312 per 10 grams in the domestic futures market, driven by strong global cues.
On the MCX, December gold futures surged ₹723, or 0.65%, to a new high of ₹1,10,312 per 10 grams.
Meanwhile, the most active October gold futures rose ₹982, or 0.9%, to hit a fresh peak of ₹1,09,500 per 10 grams on the Multi Commodity Exchange (MCX).
On the international front, December Comex gold futures surged to a new all-time high of $3,698.02 per ounce, while spot gold also climbed to a record level of $3,658.38 per ounce.
“Amidst ongoing global macroeconomic uncertainty, coupled with strong investor demand, gold is still considered to be a safe-haven asset. After a bit of a pullback, the price of 24-carat gold is now ₹1,08,037 per 10 g, which is still part of a wider upward trend, resulting from expectations of a U.S. Federal Reserve interest-rate cut, and a weaker U.S. dollar,” said Aksha Kamboj, Vice President, India Bullion & Jewellers Association (IBJA) and Executive Chairperson, Aspect Global Ventures.
Key reasons why gold price is skyrocketing
US Fed rate cut buzz
Traders are increasingly anticipating stronger Fed easing. Money markets have fully factored in a 25-basis point rate cut, while the likelihood of a larger 50-basis point cut has also risen to nearly 12%, according to CME’s FedWatch tool.
“Gold and silver prices extended their rally to new highs, with gold hitting an all-time record and silver climbing to a fresh 14-year peak in international markets. The surge came after weak U.S. employment data strengthened expectations of aggressive Federal Reserve rate cuts. Non-farm payrolls rose by just 22,000 against estimates of 75,000, while the unemployment rate spiked to 4.3% in August. This labour market softness has reinforced bets of a 75-basis-point rate cut by the Fed this year,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
Weaker US Dollar
The dollar eased 0.2 per cent against the Japanese yen to 147.21, while the British pound edged up 0.1% to $1.3558. The euro declined to $1.1752 after briefly hitting its highest level since July 24.
Against a basket of major currencies, the dollar dropped to 97.25, its lowest level since late July, ahead of the release of preliminary benchmark revisions for jobs data spanning April 2024 to March 2025.
Kalantri further added, “Adding further support, the dollar index slipped to a six-week low and U.S. 10-year Treasury yields declined.”
Russia-Ukraine war
Commodities market experts noted that the potential for additional US sanctions on Russia, following Moscow’s retaliatory strike against Ukraine, further boosted demand for safe-haven assets.
Trump grants tariff exemptions
US President Donald Trump has signed an executive order granting tariff exemptions starting Monday, September 8, 2025, for trading partners that reach agreements on industrial exports, including nickel, gold, various metals, as well as pharmaceutical compounds and chemicals, according to Reuters report.
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