The rates of gold and silver jumped to their fresh record highs on the MCX on Tuesday, September 30, driven by strong spot demand, hopes of a rate cut, and persisting geopolitical uncertainties. MCX Gold December futures hit a fresh record high of ₹1,17,750 per 10 grams, and MCX Silver December futures hit a fresh record high of ₹1,44,330 per kg. Around 12:10 pm, MCX Gold traded 1.21 per cent up at ₹1,17,749 per 10 grams, while MCX Silver was 0.72 per cent up at ₹1,44,135 per kg.
Gold prices are surging on a confluence of positive triggers—expectations of further rate cuts by the US Fed, concerns over Trump’s tariff policies, the dollar’s decline, heavy buying by central banks, and strong demand from retail investors are among them.
“Precious metals prices climbed to a record high, driven by safe-haven demand amid concerns over a potential US government shutdown and expectations of further Federal Reserve rate cuts,” Rahul Kalantri, VP of commodities at Mehta Equities, observed.
“Talks between President Trump and Congress failed to secure short-term funding, raising the likelihood of a shutdown and possible delays in key economic data, including the September nonfarm payrolls report,” Kalantri added.
Fed rate cuts are positive for gold prices as the yellow metal doesn’t pay interest or dividends. When the Fed cuts rates, returns from bonds and savings accounts fall. This reduces the opportunity cost of holding gold, making it a more attractive option.
Moreover, Fed rate cuts tend to weaken the US dollar, which boosts global demand for gold. They also signal a slowing economy, driving investors toward safe-haven assets, such as gold. At the same time, lower rates raise the risk of inflation—and since gold is considered a reliable hedge against inflation, its appeal strengthens further.
