Gold prices reached a record high of ₹1,28,395 in Ahmedabad on the Multi-Commodity Exchange (MCX) on Thursday, after opening at ₹1,27,604 per 10 grams. In international markets, gold futures are trading at around $4,231.59 per troy ounce as of 10:25 IST. Silver prices also extended their rally, rising to a peak of ₹1,64,660 on the MCX and $53.06 in international markets.

Rahul Kalantri, VP Commodities, Mehta Equities Ltd.,  said, "Gold and silver prices extended their rally to fresh highs as expectations grew for an imminent Federal Reserve rate cut following Chair Jerome Powell’s remarks on labour market softness. The prospect of lower interest rates and a weaker dollar enhanced gold’s attractiveness as a safe-haven asset. Meanwhile, rising US-China trade frictions over rare earth exports and potential US countermeasures added geopolitical uncertainty."

Gold prices have been rising sharply, and the momentum is clearly visible. People are asking if it can cross ₹1.5 lakh this Dhanteras. "Looking at the current market, the demand during the wedding season and global investors moving money into gold are keeping prices strong. While it may or may not touch ₹1.5 lakh this Dhanteras, the trend shows it is possible in the near future. Short-term fluctuations are normal, but buyers should not worry. Gold has always proven to hold its value over time. For families, purchasing gold during festivals or weddings is not only a tradition but also a safe and reliable investment for the future," says Piyush Gupta, Director, PP Jewellers by Pawan Gupta.

Gold prices are maintaining their surge to a new high, propelled by demand for safe-haven assets and mounting anticipation of a dovish US monetary policy outlook. "With a 98% chance, traders are pricing in a 25-basis point rate cut in October. A second cut in December is fully factored in at 100%. Investors have almost fully priced in a 25-basis point rate drop at this month's meeting, with another expected in December, after Fed Chair Jerome Powell's recent comments noting indications of a worsening labour market," says Dr Renisha Chainani, Head - Research at Augmont.

Echoing similar views, Darshan Desai, CEO - Aspect Bullion & Refinery, said, "Gold prices remain elevated at record levels, driven by expectations of more interest rate cuts from the U.S. Federal Reserve and ongoing tensions between the U.S. and China. The futures market now anticipates a larger rate cut from the Fed, possibly in October or December, which could give gold prices another boost." He further said, "Gold is also likely to remain a safe-haven asset, supported by concerns over rising and potentially unsustainable debt levels, a weakening U.S. dollar, and continued buying by central banks."

Treasury Secretary Scott Bessent stated that, in coordination with European allies, Washington might also impose export restrictions or taxes on China's imports of Russian oil. In the meantime, the protracted government shutdown increased market anxieties and posed threats to the US economy.