Gold Reaches Record Highs Amid Geopolitical Tensions and Fed Rate Cut Expectations
Gold achieved record highs with Comex reaching $4,639 per ounce and domestic prices hitting ₹1,42,500 per 10g on January 12. The precious metal experienced minor corrections on January 13 but maintains strong performance driven by geopolitical tensions, inflation concerns, and Federal Reserve rate cut expectations. Market analysts cite the rally as reflecting decisive shifts in global risk positioning, with technical levels suggesting potential for further gains.
*this image is generated using AI for illustrative purposes only.
Gold prices achieved unprecedented heights across global and domestic markets, driven by a combination of geopolitical tensions and expectations of further monetary policy easing by the US Federal Reserve. The precious metal's remarkable performance reflects shifting global risk positioning and sustained safe-haven demand.
Market Performance and Price Movements
Gold futures on Comex reached a peak of $4,639 per ounce before declining 0.80% to $4,602 per ounce on January 13 at 3:08 am GMT, representing a 0.26% decline from the previous close. On the domestic front, MCX futures opened the Tuesday session at ₹1,41,775 for 10 grams of 24-carat purity, marking a 0.18% decline from the previous close of ₹1,41,991.
| Market Performance: | Details |
|---|---|
| Comex Peak Price: | $4,639 per ounce |
| Current Comex Price: | $4,602 per ounce |
| Domestic Record: | ₹1,42,500 per 10g (January 12) |
| MCX Opening: | ₹1,41,775 per 10g |
| Peak Decline: | 0.80% |
The domestic gold market witnessed a historic milestone on January 12, when prices peaked at a record ₹1,42,500 per 10 grams, showcasing the metal's strong performance in the Indian market.
Current Gold Pricing by Purity
Gold prices vary significantly based on purity levels, with 24-carat commanding the highest premium. Current domestic pricing reflects the metal's elevated levels across all purity grades.
| Gold Purity: | Price per 10 Grams |
|---|---|
| 24K Purity: | ₹1,42,160 |
| 22K Purity: | ₹1,30,310 |
| 18K Purity: | ₹1,06,620 |
City-wise Gold Rates Across India
Gold rates across India's major cities demonstrated remarkable uniformity, with only marginal differences attributed to local taxes, jeweller margins, and logistics costs. Chennai showed slightly higher rates compared to other metropolitan cities.
| City: | 24K (per gram) | 22K (per gram) | 18K (per gram) |
|---|---|---|---|
| Chennai: | ₹14,314 | ₹13,121 | ₹10,946 |
| Mumbai: | ₹14,216 | ₹13,031 | ₹10,662 |
| Delhi: | ₹14,231 | ₹13,046 | ₹10,677 |
| Kolkata: | ₹14,216 | ₹13,031 | ₹10,662 |
| Bangalore: | ₹14,216 | ₹13,031 | ₹10,662 |
Market Drivers and Analysis
According to Justin Khoo, Senior Market Analyst - APAC at VT Market, gold's performance to all-time highs reflects a decisive shift in global risk positioning rather than a short-term anomaly. The strength remains notable given the USD Index holding close to 99, indicating that safe-haven demand remains firmly intact.
Key market drivers include:
- Elevated geopolitical uncertainty
- Expanding global defense expenditure
- Persistent inflation pressures with US CPI projected at 2.70% year-on-year
- Tariff-led fiscal expansion estimated at $250-270 billion reinforcing hedging demand
Technical Outlook and Price Trajectory
The Augmont Bullion report published on January 12 noted that gold's surge to fresh record highs was driven by rising geopolitical tensions and growing expectations of further US Federal Reserve rate cuts. The gold rally began in mid-August around $3,400, reaching $4,400 by mid-October before retracing and taking support from the uptrend line.
With gold crossing its previous high resistance of $4,570, technical analysts are monitoring key levels at $4,745-50 (78.60% Fibonacci extension) and $4,966-70 (100% Fibonacci extension) for potential future targets.
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