Gold prices surged to fresh record highs on Friday, driven by expectations of a U.S. Federal Reserve rate cut after weaker economic data. On the Multi Commodity Exchange (MCX), gold hit a lifetime peak of ₹1,07,807 per 10 grams before closing at ₹1,07,740, posting a 3.8% weekly gain. Globally, COMEX gold settled at $3,653.30 per troy ounce. With this momentum, gold has already gained nearly 35% year-to-date.
According to Sugandha Sachdeva, Founder of SS WealthStreet, the rally has been fueled by a mix of softer U.S. labour market data, dovish signals from the Fed, and ongoing geopolitical and trade tensions. August payrolls rose by only 22,000 against expectations of 75,000, while unemployment climbed to 4.3%, highlighting economic weakness. These factors, combined with Fed Chair Jerome Powell’s comments, have strengthened expectations of a 25 bps rate cut in the September meeting.
Another strong driver is central bank demand. For three consecutive years, global central banks have bought over 1,000 tonnes annually, pushing gold’s share in reserves to a three-decade high of 24% in Q1 2025. This steady buying reflects a long-term shift away from the U.S. dollar, reinforcing gold’s appeal as a safe-haven asset.
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