Gold Breaches Rs 1.11 Lakh/10 G In Futures Trade As Traders Await Key US Inflation Data

New Delhi : Gold prices breached the Rs 1.11 lakh per 10 grams by jumping Rs 799 in the domestic futures market on Monday tracking strong global cues as investors looked ahead to key US inflation data and comments from several Federal Reserve officials this week for further policy guidance.
On the Multi Commodity Exchange (MCX), gold futures for December delivery climbed Rs 799 or 0.72 per cent to hit a record high Rs 1,11,750 per 10 grams.
However, the most traded precious metal futures for October delivery appreciated Rs 761 or 0.69 per cent to Rs 1,10,608 per 10 grams. Last week, it had surged to hit a fresh peak of Rs 1,10,666 per 10 grams.
Silver, too, witnessed gains to hit record peaks. The white metal futures for March next year delivery rallied Rs 2,446 or 1.86 per cent to hit an all-time high of Rs 1,33,582 per kilogram.
Similarly, the most traded silver futures for December delivery surged by Rs 2,473, or 1.9 per cent, to hit a fresh peak of Rs 1,32,311 per kg on the MCX.
Traders said weakness in the rupee and subdued sentiment in the domestic equity markets further supported the bullion prices.
On the global front, gold futures increased by USD 26.82, or 0.72 per cent to USD 3,732.62 per ounce. Last week, it rose to hit a lifetime high of USD 3,744 per ounce.
“Gold prices edged up to hover near record levels, as investors looked ahead to key US inflation data and comments from several Federal Reserve officials this week for further policy guidance,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Last week, the US Federal Reserve delivered its first rate cut of the year and signalled further reductions ahead as the labour market weakens.
“Markets currently imply two more reductions this year, one in October and another in December, with expectations of continued monetary policy easing providing a major boost to bullion’s 40 per cent surge so far this year,” Trivedi said.
Gold has also been supported by safe-haven demand amid ongoing geopolitical tensions and concerns over the economic impact of President Donald Trump’s tariffs, alongside robust central bank buying and sustained ETF inflows, he added.
Meanwhile, silver futures for December delivery were trading 2.17 per cent higher at USD 43.88 per ounce.
“Silver has been carving out a more aggressive trajectory than gold, driven by investment flows, solar panel demand and industrial use in electric vehicles, 5G infrastructure and battery storage,” said Riya Singh, Research Analyst, Commodities and Currency, Emkay Global Financial Services.
Supply growth has been muted, leaving the market vulnerable to disruptions, she added.
Pranav Mer, Vice President, EBG – Commodity & Currency Research, JM Financial Services, projected that silver prices in the domestic market have an upside potential to test Rs 1,40,000-1,50,000 per kilogram on the commodities bourse. (Agencies)