Gold prices soared to fresh record highs in morning trade on Tuesday, fuelled by global economic concerns and heightened expectations of further rate cuts by the US Federal Reserve. On the Multi Commodity Exchange (MCX), December gold futures touched an all-time peak of Rs 1,20,769 per 10 grams, marking another milestone for the yellow metal.
By around 9:15 am, gold was trading 0.43 per cent higher at Rs 1,20,769 per 10 grams, while MCX silver December futures also edged up 0.12 per cent to Rs 1,47,701 per kg.
In the international market, spot gold prices surged in tandem, as investors flocked to safe-haven assets amid intensifying political and economic unease in the United States. The ongoing US government shutdown, now in its seventh day, has frozen nearly $1.7 trillion in federal funds, stoking fears of job losses and slowing economic momentum.
Fed Rate Cut Hopes Drive Safe-Haven Demand
Analysts noted that expectations of more interest rate cuts by the US Federal Reserve are buoying sentiment in bullion markets. “Gold prices rose to an all-time high, extending gains to a third session on US economic and political uncertainties and expectations of further interest rate cuts by the Federal Reserve,” experts observed.
Meanwhile, the White House has retracted President Donald Trump’s earlier claim that federal employees had already been laid off due to the shutdown but warned that the ongoing standoff could soon begin impacting employment levels.
Market participants are now closely tracking several crucial developments, including the Federal Open Market Committee (FOMC) meeting minutes, a speech by the Fed Chair, China’s market reopening post-holiday, and any progress on US political negotiations.
Gold Rates in Chennai Rise Alongside National Trend
In Chennai, retail gold prices mirrored the national rally. As of Tuesday, 22-karat gold is priced at Rs 11,200 per gram, while 24-karat gold (999) stands at Rs 12,218 per gram.
India, the world’s second-largest gold consumer after China, remains heavily dependent on imports to meet its domestic demand. With bullion denominated in US dollars, any shift in the rupee-dollar exchange rate directly influences domestic prices.
Additionally, local levies such as import duty and GST keep Indian gold prices higher than global benchmarks.
For investors in Chennai, the sharp rally highlights gold’s continued appeal as a hedge against uncertainty. As global events unfold, the focus now turns to how sustained geopolitical risks and monetary easing shape demand in the weeks ahead.
