Gold Inches Closer to Historic Highs Amid Global Uncertainty

Gold prices have surged near record highs influenced by global trends and strong investor demand. The rise is supported by expectations of continued loose US monetary policy amid steady inflation, falling producer prices, high jobless claims, and geopolitical tensions impacting safe-haven demand.

Gold prices witnessed a significant rise on Friday, climbing Rs 572 to reach near record levels of Rs 1,09,553 per 10 grams in the domestic futures market. The surge is a reflection of a strong global trend and firm investor demand, according to data from the Multi Commodity Exchange.

The most traded October delivery on MCX noted an increase of 0.52 percent with a business turnover of 16,533 lots. Meanwhile, December delivery futures also saw a remarkable advance, further solidifying the bullish sentiment amongst investors.

The escalation in gold prices was bolstered by expectations of persistent loose US monetary policy due to steady inflation and a weakening labor market. Furthermore, geopolitical tensions over US and G7 allies' actions concerning India and China, as well as conflicts in Ukraine and the Middle East, have heightened the safe-haven demand for gold.