Gold prices surge on US Fed rate cut bets

Gold and silver prices hit record highs today, mirroring strong global trends driven by rising expectations of interest rate cuts by the US Federal Reserve and increased demand for safe-haven assets. On the Multi Commodity Exchange (MCX), gold prices surged 1.21 percent to ₹1,35,824 per 10 grams, while silver jumped 2.67 percent to a lifetime high of ₹2,13,999 per kg.

In the international market, gold crossed the $4,400 per ounce mark for the first time, and silver climbed 3.3 percent to a record $69.44 per ounce. Bullion prices have risen nearly 67 percent so far this year, marking their strongest annual performance since 1979. Silver has outperformed gold significantly, gaining about 138 percent year-to-date, supported by strong investment demand and ongoing supply shortages.

Analysts attribute the rally to geopolitical uncertainties, steady central bank purchases, and expectations of lower interest rates. A weaker US dollar has further boosted prices by improving affordability for global buyers. While seasonality remains supportive, experts caution that year-end profit booking could trigger volatility as trading volumes thin.