New Delhi: Gold glittered brighter than ever in India on Monday as domestic prices touched an unprecedented ₹1.06 lakh per 10 grams, marking the highest level in history. The surge came on the back of a weaker rupee, escalating trade tensions, and a strong global rally fuelled by expectations of a US Federal Reserve interest rate cut this month.
On the international front, bullion prices reached a four-month high, reflecting a global shift toward safe-haven assets. Traders are increasingly betting on the Fed reducing rates, with the CME FedWatch Tool suggesting an 87% probability of a 25-basis-point cut in September. Market confidence deepened after San Francisco Fed President Mary Daly reiterated her support for an early rate adjustment, even as last week’s US core PCE inflation numbers came in line with forecasts.
Traditionally, gold thrives in low-yield environments, and this sentiment has been amplified by added pressure on the US dollar. A recent American court ruling declaring much of President Donald Trump’s tariffs illegal has unsettled global markets, weakening the dollar and enhancing gold’s allure.
In India, however, the climb in prices has been sharper than global benchmarks. The rupee’s steep depreciation plunging to an all-time low against the dollar magnified local bullion costs. Additionally, US tariffs on Indian goods have aggravated trade frictions, prompting investors to hedge against uncertainty through gold.
Rahul Kalantri, Vice President of Commodities at Mehta Equities, said, “Gold prices are seeing a twin boost from global cues and domestic factors. Escalating trade tensions and a weakening rupee are adding extra momentum.” He identified technical support levels at ₹1.02–1.03 lakh per 10 grams and resistance in the range of ₹1.04–1.05 lakh.
Looking ahead, all eyes are on the US non-farm payrolls data, due September 5. The figures are expected to heavily influence the Fed’s decision and set the tone for bullion trends in the coming weeks.
For Indian households and jewelers, the record-high gold rate poses a mixed picture: while investors welcome the surge, consumers preparing for the upcoming festive season may face a heavier burden on their wallets.