Mumbai, Oct 7 – Gold hit a new record on the Multi Commodity Exchange (MCX) this morning as investors sought a safe‑haven amid mounting global tensions and talks of further U.S. Fed rate cuts.
At about 9:15 a.m., MCX gold futures for December traded at Rs 1,20,769 per 10 grams, its highest ever price. Silver futures were also up, reaching Rs 1,47,701 per kilogram. The surge helped lift overall gold demand across India.
Around the world, gold prices echoed the domestic rally. The metal has become a preferred choice for investors worried about the economy and politics in the United States, especially as the U.S. government faces a seventh‑day shutdown that has frozen roughly $1.7 trillion in federal funds—about a quarter of the annual budget. This shutdown threatens more job losses and adds to the market’s uncertainty.
Analysts say the spotlight is on a handful of key events that could shape next week’s trading: the Federal Open Market Committee (FOMC) meeting minutes, a speech by Fed Chair Jerome Powell, China’s market reopening after its holiday, and further updates on the U.S. shutdown.
“Gold rallying to an all‑time high reflects investors’ nervousness about U.S. economic and political conditions and the expectation that the Fed may cut rates again,” one market expert said. “The situation on Capitol Hill, with the risk of job cuts, keeps traders on edge.”
Despite the White House downplaying claims that staff layoffs have already begun, analysts warn that the standoff could extend further, amplifying worries about employment and economic stability.
For now, gold remains a go‑to asset for those looking to protect wealth during uncertain times. Traders will stay alert for the upcoming Fed announcements and any changes to the U.S. shutdown, which could either reinforce the current rally or cause a quick pullback.
Source: ianslive
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