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Gold futures breached the USD 3,600 per ounce mark on Monday, marking their fresh all-time high, on expectations that the US Federal Reserve will cut the key policy rate.
At 16.06 IST, international gold traded at USD 3,656 per ounce. Traditionally, rate cuts invariably make safe-haven asset gold lucrative. "Tariff uncertainties along with firm rate cut expectations continue to provide strong support to Gold," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities. According to Trivedi, key support for gold is seen at USD 3560, while resistance at USD 3650. Weak US labour data bolstered expectations of an imminent Federal Reserve rate cut, Kedia Advisory said in a note. August payrolls showed fewer job additions than forecast, while unemployment rose to its highest since 2021, raising pressure on the Fed to ease policy. Gold, internationally, has been continuing with its stellar run. "The move (rise in gold prices) was driven by weaker-than-expected non-farm payrolls data, which strengthened the case for an imminent rate cut," Axis Securities said. In August 2025, it closed the month at USD 3,429 per ounce, marking a 3.9 per cent monthly gain, and taking its year-to-date rise to 31.4 per cent, according to World Gold Council data. The rally in gold was observed due to a weak US dollar, strong inflows into gold-backed ETFs, and persistent geopolitical tensions, the WGC has said. Global gold ETFs saw their third consecutive inflows in August, once again led by Western funds. In India, one of the world's largest gold consumers, the price momentum has been robust. At the time of filing this report, MCX gold traded at Rs 108,122 per 10 grams, up 0.4 per cent. Domestic gold prices gained an impressive 34-35 per cent jump since the start of the year 2025, the WGC report showed. India's market performance outpaced that of many peers, reflecting robust investment demand and a steady domestic appetite at high price levels. (ANI)
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