Gold Price at Record High on MCX
Gold price today touched a new record high on the Multi Commodity Exchange (MCX) as investors rushed to safe-haven assets. On Tuesday, September 30, MCX Gold December futures surged to ₹1,17,550 per 10 grams, marking the highest-ever level. At the same time, MCX Silver December futures jumped to ₹1,44,200 per kg, also hitting a record peak.
Around 9:45 am, MCX Gold traded 1.04% higher at ₹1,17,550, while MCX Silver was up 0.62% at ₹1,43,990 per kg. This remarkable rally has been fueled by strong spot demand, expectations of US Federal Reserve rate cuts, and persistent geopolitical concerns.
Why Gold Prices Are Rising So Sharply?
The rally in gold and silver prices is being supported by a combination of international and domestic factors:
- Rate Cut Hopes: Markets are factoring in an 89% probability of a 25-basis-point Fed rate cut at the next meeting.
- Weakening US Dollar: Rate cut expectations are pulling down the US dollar, making gold more attractive globally.
- Geopolitical Tensions: Concerns over Trump’s tariff policies and looming US government shutdown have triggered safe-haven buying.
- Central Bank Purchases: Heavy buying by central banks worldwide continues to drive demand.
- Retail Investor Interest: Strong retail demand during the festive season in India is adding momentum.
International Gold Price Today
According to Reuters, global gold prices also hit fresh highs on Tuesday, positioning the metal for its best monthly gain in 14 years. International gold demand has surged amid fears of a potential US government shutdown and the possibility of multiple Fed interest rate cuts.
Expert Views on Gold Price Today
Rahul Kalantri, VP of Commodities at Mehta Equities
“Precious metals prices climbed to record highs, driven by safe-haven demand amid concerns of a potential US government shutdown and expectations of further Federal Reserve rate cuts.”
He also noted that delays in key US economic data, such as the September nonfarm payrolls report, could further fuel uncertainty and support gold’s bullish momentum.
Jigar Trivedi, Senior Research Analyst at Reliance Securities
“Gold prices rose to a fresh record high amid mounting concerns over a looming US government shutdown and tariff-related uncertainties. New US tariffs on heavy trucks, patented drugs, and other items are set to take effect on Wednesday, further pushing safe-haven demand.”
Why Fed Rate Cuts Boost Gold Prices
Gold is a non-yielding asset, meaning it does not provide interest or dividends. When the Federal Reserve cuts interest rates, returns from traditional investment options like bonds and savings accounts decline. This lowers the opportunity cost of holding gold, making it more attractive for investors.
Additionally:
- Weaker Dollar: Rate cuts generally weaken the US dollar, increasing global demand for gold.
- Economic Slowdown: Cuts indicate a slowing economy, prompting investors to shift toward safe assets.
- Inflation Hedge: Lower rates raise inflation risks, and gold is considered a strong hedge against inflation.
Silver Prices at Record Levels Too
Alongside gold, silver prices today also touched lifetime highs on the MCX. Silver December futures surged to ₹1,44,200 per kg, supported by industrial demand, festive buying, and safe-haven appeal. Silver tends to move in tandem with gold but also benefits from its widespread use in industries like electronics, solar energy, and medicine.
Investor Strategy: What Should Investors Do?
With gold and silver hitting record highs, many investors are wondering whether to buy, hold, or book profits. Experts suggest the following strategies:
For Short-Term Traders
- Use Caution: Gold and silver are in uncharted territory, and volatility could increase.
- Book Partial Profits: Traders sitting on strong gains may consider booking partial profits.
- Watch Key Data: Keep an eye on US economic reports and Fed meeting outcomes.
For Long-Term Investors
- Buy on Dips: Long-term investors can accumulate gold on price corrections.
- Portfolio Diversification: Experts recommend allocating 10–15% of total portfolio to gold for hedging against inflation and uncertainties.
- Stay Invested: Gold is expected to remain bullish in the medium term due to strong central bank demand and global uncertainties.
Key Triggers to Watch Ahead
Investors should keep track of the following events that may impact gold and silver prices in the coming weeks:
- Outcome of the US Federal Reserve meeting
- Progress on US government funding talks
- Impact of Trump’s new tariff policies
- Global central bank gold purchase trends
- Seasonal and festive demand in India
Gold Price Outlook
Market analysts predict that MCX Gold could test higher levels if US economic conditions worsen and the Fed signals aggressive rate cuts. Similarly, silver is expected to remain bullish due to both safe-haven and industrial demand.
- Support Levels for Gold: ₹1,16,200 – ₹1,16,500 per 10 grams
- Resistance Levels for Gold: ₹1,18,000 – ₹1,18,500 per 10 grams
- Support Levels for Silver: ₹1,42,000 – ₹1,42,500 per kg
- Resistance Levels for Silver: ₹1,45,000 – ₹1,46,000 per kg
Conclusion
The gold price today has reached a historic milestone, with MCX Gold December futures soaring past ₹1,17,500 per 10 grams and MCX Silver December futures crossing ₹1,44,000 per kg. Strong spot demand, rate cut hopes, weakening dollar, central bank purchases, and geopolitical tensions are driving this rally.
For investors, gold remains a reliable long-term asset that provides safety and diversification. While short-term traders should remain cautious of volatility, long-term buyers may continue to see gold as a hedge against inflation and global uncertainty.
