Gold futures hits fresh peak on rate-cut hopes

New Delhi: Gold prices rose Rs 384 to touch a record of Rs 1,10,563 per 10 grams in the domestic futures market, buoyed by strong global cues and expectations of a rate cut by the Federal Reserve that spurred safe-haven demand.

Gold futures for October delivery climbed 0.34 per cent. The contract had touched a previous high of Rs 1,10,330 in the last session.

Similarly, the December contract advanced by Rs 418 or 0.37 per cent to hit a fresh peak of Rs 1,11,655 per 10 grams against the earlier high of Rs 1,11,350.

“Gold prices scaled a record peak, supported by a weaker dollar and US Treasury bond yields ahead of the Federal Reserve’s policy meeting, where the central bank is widely expected to cut borrowing rates,” Manav Modi, Research Analyst for Precious Metals at Motilal Oswal Financial Services, said. In the overseas markets, spot gold rose to scale a fresh peak of $3,698.94 per ounce.