Gold surges to record high of Rs 76,000 on MCX, here's why

Gold price: Gold prices surged to record high of Rs 76,000 per 10 grams on the Multi Commodity Exchange. Gold futures for October expiry rose as much as 1.32 per cent to hit an all-time high of Rs 76,000 on the MCX, data from the commodity exchange showed. Surge in gold price came after price of gold on Commex rose 0.32 per cent to $2,685.90.

Slew of reasons like rising geo political tensions across the world with Israel-Hamas war and Russia-Ukraine war and larger than expected interest rate cut by the US Federal Reserve are leading to surge in demand for gold which is considered as a safe haven asset.

Demand for gold further got a boost after China unveiled slew of measures like interest rate cuts and more funding in a move to revive the slowing economy.

"Expectation of further interest rate cuts by the Fed has fuelled the rally, Escalation of geopolitical tensions between Israel and Lebanon have also pushed up gold prices," Emkay Global Financial Services said.

In the spot market, gold prices remained flat at Rs 76,950 per 10 grams in the national capital amid a firm trend in the overseas markets.

The precious metal had revisited the all-time high level of Rs 76,950 after a gap of six months.

"With prices touching record highs marks the fourth consecutive day of gains for the precious metal, driven by concerns over US economic uncertainty and expectations of aggressive monetary policy easing by the US Fed," said Maneesh Sharma, AVP, Commodities & Currencies, Anand Rathi Shares and Stock Brokers.

Markets could look ahead to key speeches from Fed officials, including Fed Chair Jerome Powell's speech along with US GDP and Core Price Consumption Expenditures (PCE) Index data to provide fresh direction to prices during the week, he added.

(With PTI inputs)