Gold Prices Surge Amid Federal Reserve Rate Cut Speculations

Gold prices surged on Tuesday, driven by investor speculation of a potential US Federal Reserve interest rate cut following dovish signals from officials. This bullish momentum was reflected in both the MCX and Comex futures, while silver also showed gains. Key US economic data releases are awaited for further direction.

On Tuesday, gold prices experienced a significant jump in the futures trade, increasing by Rs 1,458 to Rs 1,25,312 per 10 grams, sparked by global trends and mounting expectations of an interest rate cut by the US Federal Reserve after dovish hints from its officials.

On the Multi Commodity Exchange (MCX), December gold futures saw a rise of 1.18%, while silver futures also rallied, with December delivery climbing by 1.67% to Rs 1,57,065 per kilogram.

Globally, Comex gold futures for December delivery increased by USD 47.8 per ounce, marking a streak of gains. Investors are keenly observing upcoming US economic data, such as retail sales and the Producer Price Index, to gauge the potential direction of the Fed's monetary policy.

(With inputs from agencies.)