Gold Prices Surge To Fresh Highs Above Rs 1 Lakh Amid Fed Rate Cut Expectations; Silver Also Edges Lower

Gold Price Today: Gold prices continued their upward trajectory on Wednesday, holding above the one lakh mark despite a marginal decline in the domestic market. At the time of reporting, 10 grams of 24-karat gold was trading at Rs 1,09,440, according to India Bullion rates.

The morning session saw gold futures on the Multi-Commodity Exchange (MCX) trade slightly lower due to profit booking at elevated levels, although global cues remained supportive.

The Multi-Commodity Exchange (MCX) facilitates online trading of derivative contracts for commodities, including precious metals.

Data from the India Bullion and Jewellers Association (IBJA) showed that gold eased by Rs 66 to Rs 1,09,409 per 10 grams on Wednesday, compared to Rs 1,09,475 in the previous session.

Silver also edged lower by Rs 626 to Rs 1,24,144 per kg, after closing earlier at Rs 1,24,770.

What did the Expert Say?

According to Dr. Renisha Chainani, Head of Research at Augmont, "Gold Oct Futures has achieved the target of $3,700 (Rs 110,000). We can see some profit-booking around $3,600 (Rs 108,000), if prices fall below $3,655 (Rs 108,800). Meanwhile, if the uptrend continues above $3,700 (Rs 110,000), the next target would be $3,800 (Rs 113,500)."

Similarly, "Silver Nov Future prices have been consolidating in the range of $41 (Rs 123,000) and $42 (Rs 126,000) for the past few days. Either a side-breakout or breakdown will make a 2-3% sharp move," she added.

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Gold Price Up By 40%

Fundamental factors continue to drive gold prices higher. Precious metals have risen nearly 40% this year, surpassing $3,700 (~Rs 110,000) after a 27% surge in 2024, supported by dovish monetary policies, a soft dollar, robust central bank stockpiling, and increased global uncertainty.

In the 12 months ending in March, the US economy reportedly created 911,000 fewer jobs than previously estimated, indicating weakening employment growth even before the imposition of strong import tariffs.

Last week's release of US nonfarm payroll data also pointed to deteriorating labour market conditions, reinforcing expectations of an imminent Fed rate cut.