Gold prices in India scaled a fresh all-time peak on Friday, continuing their remarkable upward trajectory as investor sentiment turned bullish on the prospect of softer monetary policy from the US Federal Reserve.
Historic Rally on the MCX
The trading session on December 26 witnessed a powerful surge in the precious metal. As the Multi Commodity Exchange (MCX) opened for business, gold futures contracts immediately jumped. The price registered a sharp increase of 0.65%, propelling it to an unprecedented level of ₹1,38,994 for every 10 grams.
Momentum Builds Through the Morning
The bullish momentum did not fade after the opening bell. The rally gathered further strength as the morning progressed. By 10:05 AM, the gold price on the MCX had climbed even higher, touching a stunning new record of ₹1,39,181 per 10 grams. This sustained upward movement underscores the intense buying interest driving the market.
Fed Rate Cut Speculations Fuel the Fire
The primary catalyst behind this significant price jump is a renewed wave of optimism among global investors. Market participants are increasingly betting that the US Federal Reserve will begin cutting interest rates in the coming months. Lower interest rates typically diminish the appeal of yield-bearing assets like bonds, making non-yielding gold a more attractive investment. This shift in expectations is channeling substantial funds into the gold market, pushing prices to new highs.
Today's record-setting performance on the MCX highlights gold's status as a preferred safe-haven asset during periods of anticipated monetary easing. Analysts are closely watching the Fed's signals, as any further hints regarding rate cuts could extend this rally. Investors and traders are advised to monitor the situation closely, as this remains a developing market story with potential for more volatility and updates.
