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Gold prices reached new record highs on Monday, September 1, 2025, driven by expectations of a US Federal Reserve rate cut and growing uncertainty regarding US President Donald Trump’s tariffs. Global monetary easing amid increasing geopolitical unrest has made gold an appealing asset for investors.
Investors closely monitor the Gold Price Today to make informed trading decisions. In the domestic market, gold prices soared to new all-time highs on the Multi-Commodity Exchange (MCX). October contracts increased by 1% to Rs 1,05,937 per 10 grams on MCX, the highest ever.
The October futures are trading at Rs 1,04,812 per 10 grams, representing a 0.95% increase. The price increase was supported by a combination of sustained spot demand, a decline in the rupee, and global factors supporting gold.
A detailed Gold Price Chart helps analyze historical performance and market trends. With prices at near-record levels, there is ongoing strong investor interest, as both retail and institutional investors have trust in the metal as a safe asset.
Globally, gold prices climbed to their highest point in more than four months. Spot gold rose 0.7% to $3,470.69 per ounce, while US gold futures for December delivery gained 0.8%, trading at $3,543.70 per ounce.
Analysts share their Gold Price Prediction to guide long-term investment strategies. The surge was driven by comments from Federal Reserve officials indicating a strong possibility of a rate cut later this month.
The MCX Gold segment remains a preferred choice for traders in the Indian market. Mary Daly, President of the San Francisco Fed, expressed her support for cutting rates, citing labor market risks in the US labor market despite inflation remaining above the Fed’s target.
A strong Gold Market Rally often signals renewed investor confidence in commodities. The remarks fueled the expectations for a 25-basis point rate cut as early as September and added momentum to price advances in gold.
Also Read: No Tariffs on Gold: A Boost or Threat to Bitcoin?
A combination of factors has fueled gold’s recent rally. A recent US appeals court ruling declaring most of President Trump’s tariffs illegal added to market uncertainty, further weakening the US dollar and boosting the appeal of gold.
Additionally, inflation remains a key topic. The PCE Price Index, which the Fed tracks, increased by 0.2% month-over-month and 2.6% year-over-year in July, in line with market expectations.
Although inflation remains a concern, traders assigned a 87-89% probability of a 25-basis-point cut by the Fed, which typically benefits non-yielding assets, such as gold.
The future direction of gold depends heavily on the US non-farm payrolls report expected on Friday. A weaker-than-expected jobs report could strengthen the case for a rate cut, providing more upside potential for gold.
With volatility surrounding trade policies, inflation, and interest rates, gold is expected to continue its uptrend. Investors will closely watch the Fed's next move and any trade developments to determine where the yellow metal may head in the coming weeks.
