Gold Soars To Record Rs76,899 Per 10 Grams Amid Global Tensions And Fed Rate Cut Speculation

New Delhi, Oct 17: Gold prices in India reached a historic peak on Thursday, with the Multi Commodity Exchange (MCX) recording a new all-time high of Rs76,899 per 10 grams.

Experts say the surge in gold prices came amid a confluence of factors, including major central banks' dovish outlooks, slightly lower bond yields, and heightened geopolitical tensions.

Ajay Kedia, Director of Kedia Advisory, explained the factors driving the historic rise in gold prices in an exclusive conversation with ANI.

He said, "MCX Gold reached an all-time high of Rs 76,899 as major central banks' dovish outlooks and slightly lower bond yields boosted demand for non-interest-bearing bullion. The Federal Reserve is expected to cut rates in its two remaining decisions this year, with a 25-basis-point cut in November looking increasingly likely."

He further added, "Gold prices were also boosted by uncertainty surrounding the US presidential election and renewed Middle Eastern tensions, following Israel's intensified air strikes on Lebanon on Wednesday."

Adding to the analysis, Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, noted that global gold prices were also experiencing an upswing.

Kaynat Chainwala said, "Comex gold prices surged, bolstered by falling US Treasury yields and strong safe-haven demand amid escalating geopolitical tensions. However, prices pulled back from higher levels due to a stronger dollar. Despite this, safe-haven bids stemming from heightened tensions in the Middle East, particularly following Israel's strikes on Hezbollah in Lebanon, helped limit the decline, allowing COMEX gold to close 0.5% higher at $2,691.30 per ounce."

He further added, "Today, Comex gold has continued its upward trend, reaching $2,700.60 earlier in the session, amid uncertainty surrounding the upcoming US elections and anticipation of key US economic data. US Retail sales and jobless figures are being closely watched for insights into the pace of Federal Reserve easing this year. So far, signs of resilience in the US economy have led to speculation that the Federal Reserve may adopt a less aggressive approach to rate cuts."

The combination of lower bond yields, geopolitical tensions, and central banks' dovish stances appears to be setting the stage for a continued rally in gold prices, with safe-haven demand showing no signs of waning. (ANI)