2025-09-01T03:35:58Z

Are you ready for a jaw-dropping revelation? Gold prices have skyrocketed to record highs, and it’s not just a coincidence! On September 1, during a bustling session in the domestic futures market, gold and silver reached unprecedented levels, driven by a cocktail of factors including strong demand, a dip in the dollar’s value, and whispers of potential interest rate cuts from the US Federal Reserve. This is more than just an economic update; it's a sign of times shifting in the global market.

Gold's October futures leaped a remarkable 2% to hit a staggering ₹1,05,937 per 10 grams, while silver's December futures mirrored this trend, soaring to ₹1,24,214 per kg, also up nearly 2%. By around 9:50 AM, trading showed gold at ₹1,04,883 per 10 grams, edging up 1.02%, while silver was at ₹1,24,079 per kg, gaining 1.81% on the MCX.

So, what’s fueling this golden surge? The anticipation of a rate cut by the Federal Reserve has become the primary engine behind this bullish trend. Following US Fed Chair Jerome Powell's hints during his speech at Jackson Hole, optimism has spread like wildfire. Several Fed officials have echoed this sentiment recently, with Governor Christopher Waller supporting a cut soon, and San Francisco Fed Bank President Mary Daly backing similar moves to safeguard the labor market.

The signs are there, with the CME FedWatch tool suggesting an astounding 87% likelihood of a 25 basis point rate cut this month. Mark your calendars for September 16-17, when the Federal Open Market Committee (FOMC) will convene to make crucial decisions on policy rates, which could further influence these soaring prices.

Adding to this mix is the ongoing uncertainty surrounding former President Trump’s tariff policies, which have created ripples in global economic growth. As negotiations continue with major trading partners, including India—who is awaiting the removal of hefty tariffs—the volatility in policy direction keeps investors on edge. In uncertain times, gold shines as a reliable safe haven.

The dollar's weakness also plays a pivotal role in this equation. A decline of around 0.10% in the dollar index on August 31 has made gold more accessible, as it’s priced in dollars. When the dollar falters, gold becomes a more attractive purchase in other currencies, raising its global demand.

Now, all eyes are on crucial labor market data set to be released this week, which could shape expectations ahead of the Fed's policy direction. Analysts like Jigar Trivedi from Reliance Securities highlight that gold’s rapid ascent is also supported by recent US inflation data, solidifying expectations for a rate cut later this month.

Is it the right moment to invest in gold? Experts seem optimistic about further gains, suggesting a buy-on-dips strategy rather than selling off. Manoj Kumar Jain of Prithvifinmart Commodity Research expresses confidence that gold could reach ₹1,07,000 while silver might touch ₹1,27,000 in the near term. He advises cautious trading, indicating support levels for both metals and urging investors to watch closely.

Interestingly, Rahul Kalantri from Mehta Equities also echoes these sentiments, suggesting that gold and silver are set to continue their upward trajectory in the coming days. With all these factors converging, now is the time to consider how this AI-generated newscast about gold prices can influence your investment decisions.