New Delhi : Gold hits record high on Monday, crossing $3,900 per ounce, as investors rushed to the safe-haven asset amid fears of a prolonged US government shutdown and expectations of more rate cuts by the Federal Reserve.
Spot gold rose 0.4 per cent to $3,900.40 per ounce in early Asian trade after briefly hitting an all-time high of $3,919.59.
US gold futures for December delivery also gained 0.5 per cent to $3,926.80. The rally in gold came as political uncertainty deepened in the US.
Adding to the momentum, expectations are rising that the Federal Reserve will cut interest rates further this year.
Fed Governor Stephen Miran recently called for an aggressive rate cut plan, warning about the economic effects of the Trump administration’s policies.
Gold has already jumped 49 per cent so far in 2025, after rising 27 per cent in 2024, as per the official data.
The surge has been fueled by strong central bank buying, higher demand for gold-backed exchange-traded funds (ETFs), a weaker dollar, and rising retail interest as investors seek protection from global trade and geopolitical tensions.
In India, physical gold demand increased last week despite record prices, as a key festival encouraged buying in the world’s second-largest gold consumer.
according to data published by the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold (10 grams) started the week at Rs 1,15,454 on last Monday, rose to hit an all-time high of Rs 1,17,332 during the week.
However, the gold price fell a bit from its all-time high on Friday to end the week at Rs 1,16,954 per 10 grams, but remained Rs 1,500 higher than the last Monday price.
Meanwhile, the Silver price reflects the yellow metal’s journey, ending the week at Rs 1,45,610 per kg, up Rs 1,223 from Rs 1,44,387 on last Monday.
–IANS
