Gold prices in India hit a record ₹91,335 per 10 grams in Ahmedabad on Thursday. Globally, gold is trading at all-time highs, with MCX gold at ₹88,602 in the previous session. International gold prices stand at $3,048 per ounce as of 10:00 AM (IST).

"Gold and Silver prices witnessed some profit booking in yesterday’s session as market participants were cautious ahead of the Fed policy meeting and updates regarding President Trump and Putin’s meeting," said Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services.

Fed in their second meeting of this year, kept interest rate unchanged as per market expectations. Federal Reserve hinted at possible easing of interest rates by half a percentage point by year-end, which further fostered bullion's appeal amid ongoing geopolitical and economic woes.

The dot plot continues to show US central bank could deliver two quarter-percentage-point rate cuts by the end of this year. "Federal Reserve cuts US growth forecast as Trump’s policies weigh on outlook, they expect GDP to expand by 1.7% this year," said Modi.

Meanwhile, he mentioned that progress on inflation was “probably” delayed for the time being. A slowdown in the pace of the QT programme was also announced. U.S. President Trump's tariffs, which have flared trade tensions, are widely thought to be detrimental to economic growth and potentially stoke inflation.

President Putin has agreed to a 30 days ease-off; while on the other hand Israeli airstrikes pounded Gaza and killed more than 400 people. "Focus today will be on UK interest rate decision, US weekly jobless claims and phily fed manufacturing index," said Modi.

Gold prices are surging due to geopolitical tensions, inflation concerns, and central bank buying. A weaker dollar and expectations of interest rate cuts by the U.S. Federal Reserve further boost demand. Investors seek gold as a safe-haven asset amid economic uncertainty, pushing prices to record highs in global markets.

Colin Shah, MD, Kama Jewellery said, “The US Fed kept the interest rates unchanged in this meeting. This is at par with the industry expectations, especially at a time when economic instability persists. The decision follows the inflation trend which Fed expects to rise as well as the economic growth which is speculated to soften in the near future. Moreover, the ongoing tariff threats by Trump is expected to play a dampener for growth."

"In terms of gold, it is currently in a bullish phase, having the potential to scale new levels. Spot gold hits an all-time high of $3,051.99/oz. Fed is likely to resume rate cuts in June where it hinted two rate cuts in 2025. Hence, we reiterate our view of gold touching $3100 globally and ₹91,000 domestically,” added Shah.