Mumbai, Oct 7: Gold prices hit fresh record highs in morning trade on the Multi Commodity Exchange (MCX) on Tuesday, as investors turned to the precious metal amid growing global uncertainties and expectations of more rate cuts by the US Federal Reserve.

MCX Gold December futures touched an all-time high of Rs 1,20,769 per 10 grams.

Around 9:15 am, gold was trading 0.43 per cent higher at Rs 1,20,769 per 10 grams, while MCX Silver December futures were up 0.12 per cent at Rs 1,47,701 per kg.

In the international market, gold prices also surged to record highs as investors sought safe-haven assets due to rising economic and political tensions in the United States.

Expectations that the US Fed may cut interest rates further have added to the positive sentiment around the yellow metal.

The ongoing US government shutdown has deepened worries about the country’s economic stability.

The deadlock, which has now entered its seventh day, has frozen about $1.7 trillion in funds for federal agencies -- roughly one-fourth of the total annual budget -- and could lead to more job losses, according to reports.

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Market analysts said traders are now watching key upcoming events, including the release of the Federal Open Market Committee (FOMC) meeting minutes, a speech by the Fed Chair, China’s market reopening after the holiday, and developments around the US shutdown.

“Gold prices rose to an all-time high, extending gains to a third session on US economic and political uncertainties and expectations of further interest rate cuts by the Federal Reserve,” experts said.

“White House backed off President Donald Trump's assertion that government employees were already being laid off due to the shutdown, but warned job losses could result as the standoff looked set to stretch into a seventh day,” market analysts added.

As per the experts, the focus this week will be on FOMC meeting minutes, Fed chair’s speech, China’s re-opening after holiday and updates regarding US shutdown.

(IANS)

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