Gold Rate Today: Prices Hit New Record High Amid Fed Rate Cut Expectations
Gold prices surged to a new record high, driven by expectations of an upcoming Federal Reserve rate cut and weak U.S. economic data. On Friday, MCX Gold touched ₹1,07,807 per 10 grams, marking an all-time high. Over the past week, prices have jumped by 3.80%. In the international market, COMEX Gold closed at $3,653.30 per ounce. Since the beginning of this year, gold has risen nearly 35%.
Why Are Gold Prices Rising?
Experts attribute the rally to strong expectations of a U.S. Federal Reserve rate cut during its next meeting on September 16–17. Weak U.S. economic indicators have reinforced this sentiment:
-
Non-farm payrolls rose by just 22,000 in August (vs. expectations of 75,000).
-
Unemployment rate climbed to 4.3%.
-
A 25 bps rate cut is now widely expected.
Additionally, U.S. trade tariffs, geopolitical uncertainties, and strong demand for safe-haven assets have boosted gold prices. Central banks have also supported the rally by buying over 1,000 tonnes annually for the past three years, pushing gold’s share in global reserves to 24%—a three-decade high.
Is It the Right Time to Buy Gold?
-
Darshan Desai, CEO of Spect Bullion & Refinery, noted that weak U.S. labor data has kept gold near record highs. However, technical indicators suggest the metal may be in an “overbought” zone, though lower levels still show strong support.
-
Rahul Kalantri, VP of Commodities at Mehta Equities, said that gold faces support at $3,500–$3,530/oz and resistance at $3,570–$3,590/oz.
Domestic gold has built a strong base near ₹1,05,800 per 10 grams, with the next target seen at ₹1,10,000 per 10 grams. Globally, prices could soon test $3,640/oz.
Investment bank Goldman Sachs has even projected gold could hit $5,000/oz if just 1% of U.S. Treasury market funds shift into gold.
Investment Strategy in Gold
-
Experts suggest Gold ETFs are a good option now, but investors must remain cautious.
-
For long-term investors, gold is a strong hedge against inflation and a diversification tool.
-
Short-term investors face higher risks since prices are already at record levels.
-
A systematic approach—investing small amounts at regular intervals—can help balance the risk of buying at elevated prices.
⚠️ Disclaimer: The views and investment advice shared on tradewithmohib are solely those of the respective experts/brokerage firms. tradewithmohib does not provide investment recommendations. Readers are advised to consult certified financial experts before making investment decisions.
0 Comments