Gold prices on the Multi Commodity Exchange (MCX) surged to an all-time high of ₹1,28,457 per 10 grams this week, driven by a global rally and speculation over potential interest rate cuts by the US Federal Reserve. International gold rates climbed to $4,254 per ounce, reflecting heightened investor demand for safe-haven assets amid economic uncertainty.
Despite the spike in futures prices, physical gold markets in India saw subdued activity. The strengthening of the Indian rupee—buoyed by optimism around a possible trade agreement between India and the United States—has tempered domestic spot prices. In Delhi, market rates cooled off from earlier highs, as premiums declined due to slowing retail demand.
Analysts attribute the divergence between futures and physical markets to macroeconomic factors. While global cues continue to support bullish sentiment in gold futures, domestic buyers remain cautious, awaiting clarity on currency movements and festive season trends.
The current rally has also prompted discussions among investors about profit booking versus long-term holding, especially with silver prices also hitting fresh peaks on the MCX.
