Gold hits fresh record high on MCX amid US economic uncertainty

Gold prices achieved unprecedented levels during early trading on the Multi Commodity Exchange (MCX) Tuesday morning. Growing global economic concerns and anticipated monetary easing by the U.S. Federal Reserve drove investors toward the precious metal.

December gold futures on MCX reached a historic peak of ₹1,20,769 per 10 grams.

By 9:15 am IST, gold had gained 0.43% to trade at ₹1,20,769 per 10 grams. Meanwhile, December silver futures edged up 0.12% to ₹1,47,701 per kilogram.

Global gold markets mirrored this upward trajectory, setting new records as economic and political instability in the United States heightened demand for safe-haven assets.

Market optimism surrounding potential additional Federal Reserve rate reductions further bolstered precious metal valuations.

Concerns intensified as the U.S. government shutdown entered its seventh consecutive day. The stalemate has suspended approximately $1.7 trillion in federal agency funding—equivalent to one-fourth of the annual budget—with analysts warning of potential employment impacts.

Market strategists identified several critical upcoming events that could influence precious metal trends, including:

• The imminent release of Federal Open Market Committee (FOMC) meeting minutes
• A scheduled address by the Federal Reserve Chairman
• China’s post-holiday market reopening
• Continued developments in the U.S. budget standoff

“Bullion prices have climbed for three consecutive sessions, propelled by American political economic instability and expectations of impending rate cuts,” noted financial experts.

While the White House retracted earlier claims about immediate federal worker furloughs, officials acknowledged potential employment disruptions should the shutdown persist.

Market participants remain focused on this week’s key economic indicators and policy signals, which could determine near-term precious metal performance.

(With inputs from IANS)