**Gold Prices Hit Record Highs Amid US Economic Uncertainty and Fed Rate Cut Expectations**
*Mumbai:* Gold prices surged to fresh record highs during Tuesday morning trading on the Multi Commodity Exchange (MCX), as investors increasingly sought refuge in the precious metal amid growing global uncertainties and expectations of further interest rate cuts by the US Federal Reserve.
MCX Gold December futures touched an all-time high of Rs 1,20,769 per 10 grams. Around 9:15 am, gold was trading 0.43 percent higher at Rs 1,20,769 per 10 grams. Meanwhile, MCX Silver December futures also edged up by 0.12 percent to Rs 1,47,701 per kilogram.
In the international market, gold prices similarly climbed to new record levels as investors turned to safe-haven assets amid rising economic and political tensions in the United States. Market optimism about potential US Federal Reserve rate cuts added to the positive sentiment around gold.
The ongoing US government shutdown, now entering its seventh day, has intensified concerns about the country’s economic stability. This deadlock has frozen approximately $1.7 trillion in federal funds—equivalent to roughly one-fourth of the total annual budget—which could potentially lead to increased job losses, according to reports.
Market analysts highlighted that traders are closely monitoring several key upcoming events, including the release of the Federal Open Market Committee (FOMC) meeting minutes, a speech by the Fed Chair, China’s market reopening after the holiday period, and further developments related to the US government shutdown.
“Gold prices rose to an all-time high, extending gains for the third consecutive session, driven by US economic and political uncertainties coupled with expectations of further interest rate cuts by the Federal Reserve,” experts said.
Despite the White House stepping back from President Donald Trump’s earlier claim that government employees were already being laid off due to the shutdown, officials warned that job losses could occur if the standoff continues to drag on.
As per market experts, the focus this week will remain on the FOMC meeting minutes, the Fed Chair’s upcoming speech, China’s reopening after the holiday, and updates surrounding the US government shutdown.
*Disclaimer: This story is from the syndicated feed. Nothing has changed except the headline.*
https://www.freepressjournal.in/business/gold-prices-hit-fresh-record-highs-despite-global-uncertainties-us-federal-reserve-rate-cut-expectations
