Gold and Silver Soar to New Heights Amid Economic Uncertainties

Gold prices surged to an all-time high due to global trends influenced by potential U.S. Federal Reserve rate cuts. Silver followed with record highs. Analysts cite geopolitical tensions, sustained central bank purchases, and a weaker currency as key factors driving the precious metals' remarkable rally.

In a remarkable rally, gold prices have reached an all-time high amid strong global trends, ending the day at Rs 1,12,750 per 10 grams in the domestic futures market. Experts attribute this surge to expected interest rate cuts by the U.S. Federal Reserve and a robust safe-haven buying streak, which kept the momentum steady.

The Multi Commodity Exchange (MCX) saw October gold futures rise by Rs 520 or 0.46%, while the December contract advanced Rs 530 to Rs 1,13,750 per 10 grams, marking a new peak. Similarly, silver continued its ascent, with December futures climbing Rs 461 to a record Rs 1,34,016 per kilogram. The March 2024 contract followed suit, rallying Rs 508 to Rs 1,35,397 per kilogram.

Analysts highlight the U.S. Federal Reserve's first rate cut of the year and the likelihood of further reductions as driving factors. Additionally, central banks' ongoing acquisitions and geopolitical tensions have spurred safe-haven demand. Despite gold's impressive rise, silver closely mirrors its upward trajectory, exhibiting unprecedented strength.

(With inputs from agencies.)