Gold Prices Skyrocket Amidst Fed Rate Cut Speculation

Gold prices reached an all-time high amid expectations of a US Federal Reserve interest rate cut. Weak US labor data increased the likelihood of a monetary policy easing, driving up demand for gold. Investors anticipate upcoming data to guide the Fed's interest rate decisions.

Gold prices soared on Tuesday, reaching unprecedented levels as the market braces for a potential interest rate cut by the US Federal Reserve. Weak labor market data has amplified expectations for monetary easing, boosting the demand for the precious metal.

December gold futures on the Multi Commodity Exchange (MCX) rocketed by Rs 723, setting a new record at Rs 1,10,312 per 10 grams. The October futures contract also climbed significantly, up by Rs 982 to Rs 1,09,500 per 10 grams, reflecting mounting investor interest.

Market analysts suggest that last Friday's poor US jobs report has triggered this bullish trend, with investors now closely monitoring US Producer and Consumer Price Index data to foresee further Federal Reserve policy actions.

(With inputs from agencies.)