Gold futures hit all-time high of Rs 1,14,627/10 gm; silver rises 1.3%

Indian gold and silver futures jumped to record highs early on Monday, tracking gains in overseas prices and supported by the rupee’s slide near an all-time low, dealers said.

Domestic gold futures rose 0.74% to a record high of Rs 114,627 ($1,292.29) per 10 grams in early trade, while silver futures jumped more than 1.3% to Rs 143,968 per kg.

In the global market, gold prices rose to an all-time high on Monday, supported by a weaker dollar and growing expectations that the Federal Reserve is likely to continue with interest rate cuts later this year.

Spot gold was up 0.8% at $3,789.39 per ounce as of 02:51 GMT, after hitting a record high of $3,798.32 earlier in the session.

U.S. gold futures for December delivery rose 0.3% to $3,818.30.

The U.S. dollar index eased 0.2% against its rivals, making greenback-priced bullion less expensive for overseas buyers. The U.S. Commerce Department said on Friday that its Personal Consumption Expenditures Price Index (PCE) rose 0.3% in August, compared with a 0.2% increase in July, matching economists’ estimates polled by Reuters. “That benign inflation print in the United States has given the markets reason to believe further Fed cuts are coming in October and December,” said Capital.com analyst Kyle Rodda.

“Sentiment is very bullish, and we are on track to retest another record high this week. The gold market is positioned quite long at the moment, which may warrant caution regarding future upside.”

Traders are currently pricing in a 90% chance of a Fed cut in October, with around a 65% probability of another in December, according to the CME FedWatch Tool.