Gold prices hit all-time high in India; global rates surge on Fed rate cut bets
Published on 01/09/2025 09:37 AM
Gold prices hit all-time high in India; global rates surge on Fed rate cut betsGlobally, gold hit a four-month high as traders increased bets on a US Federal Reserve rate cut this month.By Anshul September 1, 2025, 9:37:18 AM IST (Published)2 Min ReadIndia’s gold prices opened at a record high on Monday, September 1, with rates touching ₹1.06 lakh per 10 grams, driven by a weaker rupee and global demand for safe-haven assets.
Globally, gold hit a four-month high as traders increased bets on a US Federal Reserve rate cut this month.
Market sentiment strengthened after San Francisco Fed President Mary Daly reiterated her support for an interest rate cut, despite last week’s US core PCE inflation reading aligning with expectations. According to CME FedWatch, traders now see an 87% probability of a 25-basis-point cut in September.
Non-yielding gold typically gains in such a low-rate environment.
Additional pressure came from the US dollar, which weakened after a court deemed most of US President Donald Trump’s tariffs illegal. The ruling raised uncertainty around US trade policy, further boosting gold’s appeal.
In India, local bullion prices rose faster than global benchmarks due to a sharp rupee depreciation, which hit an all-time low against the dollar.
Escalating trade tensions—after the US imposed higher tariffs on Indian goods—also prompted investors to move towards precious metals.
Rahul Kalantri, VP Commodities at Mehta Equities, said, “Gold prices surge globally and domestically, fuelled by escalating trade tensions. A weakening rupee adds to the momentum.”
Kalantri noted that gold has technical support at ₹1.03 lakh–1.02 lakh per 10 grams and resistance at ₹1.04 lakh–1.05 lakh per 10 grams.
Market focus now shifts to US non-farm payrolls data due Friday (September 5), which could influence the Fed’s rate decision and set the tone for bullion prices in the weeks ahead.
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