Gold breaches $4,250/ounce in global markets

New Delhi: Gold prices on Thursday surged by Rs 1,185 to scale an all-time high of Rs 1,28,395 per 10 grams in the domestic futures trade, while the yellow metal crossed the $4,250 per ounce globally, driven by expectations of interest rate cuts by the US Federal Reserve, and persistent geopolitical tensions.

“Gold prices remain elevated at record levels, driven by expectations of more interest rate cuts from the US Federal Reserve (Fed) and ongoing tensions between Washington and Beijing,” Darshan Desai, Chief Executive Officer of Aspect Bullion & Refinery, said. He added that the futures market now anticipates a larger rate cut from the Fed, possibly later this month or December, which could give gold prices another boost.

“Gold is also likely to remain a safe-haven asset, supported by concerns over rising and potentially unsustainable debt levels, a weakening US dollar, and continued buying by central banks,” Desai said.

“Gold prices rose above $4,250 per ounce on Thursday, continuing its rally to a new record, driven by safe-haven demand and growing expectations of a dovish US monetary policy,” Jigar Trivedi, Senior Research Analyst at Reliance Securities, said.

Trivedi added that the US Federal Reserve Chair Jerome Powell’s recent remarks highlighted signs of a weakening labour market, which prompted investors to nearly fully price in a 25-basis points rate cut at this month’s meeting, with another likely in December.

Silver futures also followed suit in the global markets. The metal for December delivery rose to hit a lifetime high of $52.86 per ounce. On Wednesday, US officials criticised China’s tightened restrictions on rare earth exports, warning they pose risks to global supply chains and hinting at potential countermeasures from Washington.

Meanwhile, US Treasury Secretary Scott Bessent said that Washington could consider imposing export limits or tariffs on China’s imports of Russian Oil if coordinated with European partners, a move that could further strain trade relations and add to market uncertainty.

Analysts said both gold and silver have been on a record-setting spree this week, driven by robust investor inflows into precious metals. Any confirmation of a rate cut by the Fed would likely push bullion prices to fresh records in the weeks ahead.