Gold futures spiked to a new record high, touching $4,000 per ounce, driven by factors like safe-haven demand due to the ongoing political upheaval and economic uncertainty. The prices were further pushed higher by the hopes for more US interest rate cuts.
Gold prices in India today were trading at levels above the Rs 1,21,000 mark, amid the festive season. Gold price today stands at Rs 1,21,180 according to the India Bullion Co. Globally, the Bullion rose as high as $3,992.27 an ounce, after adding 0.6% in the previous session. December futures in New York, which is the most active contract edged higher, according to Bloomberg after surpassing $4,000 for the first time on Tuesday.
Renewed concerns over the US government shutdown have reinforced safe-haven demand, keeping precious metals well-supported. The shutdown has increased economic uncertainty and increased the bets of the interest rate cut in this year. Investors are now relying on private data for crucial clues about an already murky US economic outlook.
Gold has soared more than 50% this year as President Donald Trump shook up trade and geopolitics, with prices on track for the biggest annual gain since 1979.
Additionally, Central banks have been fervent buyers of the yellow metal, while the Fed’s rate cut last month spurred investors to pile into gold-backed exchange-traded funds, with September registering the strongest monthly inflows on record, according to the World Gold Council.
