Gold Prices Reaches New Highs
On September 16th, gold prices surged, hitting record levels as expectations for interest rate cuts by the US Federal Reserve increased. The October contract for gold on India’s Multicommodity Exchange (MCX) opened at Rs 1,10,277 for every 10 grams.
The MCX gold futures due in October peaked at Rs 1,10,548 per gram, while December futures reached a new height of Rs 1,11,599 per gram.
Here are the latest prices for 22-carat and 24-carat gold across major Indian cities on September 16th:
- 24K Gold in Delhi: Rs 1,12,080 for 10 grams
- 22K Gold in Mumbai: Rs 1,02,750 for 10 grams
- 24K Gold in Chennai: Rs 1,12,150 for 10 grams
- 22K Gold in Kolkata: Rs 1,02,800 for 10 grams
- 24K Gold in Bengaluru: Rs 1,11,930 for 10 grams
- 22K Gold in Jaipur: Rs 1,12,080 for 10 grams
- 24K Gold in Lucknow: Rs 1,12,080 for 10 grams
- 22K Gold in Hyderabad: Rs 1,02,750 for 10 grams
- 24K Gold in Ahmedabad: Rs 1,11,980 for 10 grams
(Data sourced from GoodReturns)
What’s Driving the Rise in Gold Prices?
According to analysts at Motilal Oswal Financial Services, gold is climbing due to a weaker dollar and widespread expectations that central banks, particularly in the US, will lower borrowing rates ahead of the Federal Reserve’s upcoming policy meeting. The dollar was near a two-and-a-half-month low against the euro, and it fell around 4% in the previous session. Many market participants are currently awaiting remarks from Governor Powell, which may indicate “larger” cuts to benchmark interest rates.
Is Now a Good Time to Buy Gold?
When considering whether it’s a good time to buy gold, it’s essential to clarify your purpose. If you’re looking for wealth preservation and stability, gold is a solid choice, bolstered by central bank demand, low real interest rates, and geopolitical uncertainties. That said, investment advice can vary, and it’s always wise to consult a certified expert before making any investment decisions.
