Gold prices are inching towards an all-time high in India as investors flock to the safety of the yellow metal amid mounting concerns over the independence of the Federal Reserve following U.S. President Donald Trump's threats to dismiss Fed governor Lisa Cook. On Thursday, gold was trading at around ₹101,410 per 10 grams in Ahmedabad on the Multi Commodity Exchange (MCX) at noon. Gold in the international market is around $3,390 per ounce. 

On August 8, gold reached a record high of ₹ 1.015 lakh in India. A brief hiatus followed, after which the prices began to climb following the Fed signalling a possible rate cut earlier this week. At the Fed's policy meeting next month, markets expect a 25-basis-point rate cut with a probability of more than 88%, according to the CME FedWatch Tool. "Markets seem to be confident that a new wave of U.S. tariffs might weaken global strength, making trade policy another crucial factor for gold,” says Renisha Chainani, head–research at Augmont.

Gold stayed steady in international markets, supported by the ongoing safe-haven demand. Market sentiment remains cautious amid rising geopolitical tensions and worries over increased U.S. trade tariffs. “An additional factor supporting gold's safe-haven bid could be the ongoing geopolitical danger, such as Ukraine's increased attacks on Russian energy infrastructure," adds Chainani. 

“A softer dollar also supported the bullion, while the rupee’s slide to record lows against the greenback exerted upward pressure on domestic prices. Traders are now watching upcoming U.S. employment figures and PCE data for insights into inflation trends and the Federal Reserve’s potential response," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

Over the next two days, several key macroeconomic indicators are scheduled for release in the U.S., including Q2 GDP figures, jobless claims, and the PCE inflation data for Friday. "These reports are likely to play a significant role in shaping the future direction of bullion prices," says Darshan Desai, CEO, Aspect Bullion & Refinery.