Gold futures hit fresh high of Rs 1.06 lakh/ 10g as tariff jitters, weak equities lift demand

New Delhi: Gold surged to a fresh lifetime high of Rs 1,06,199 per 10 grams on Wednesday, extending its winning streak to the 11th straight session as investors rushed to safe-haven assets amid US trade tariff uncertainty and weakness in global equities.

The most traded gold futures for the October contract climbed Rs 407 or 0.38 per cent to hit a record high of Rs 1,06,199 per 10 grams in early trade on the Multi Commodity Exchange.

Subsequently, the December contract of the yellow metal also surged, advancing Rs 286 or 0.27 per cent to hit another lifetime high of Rs 1,07,150 per 10 grams on the commodities bourse.

In the last 11 trading sessions, the yellow metal prices have surged Rs 5,941 per 10 grams, or 5.93 per cent, from Rs 1,00,258 per 10 grams on August 20, to the fresh record of Rs 1,06,199 per 10 grams on September 3.

Tracking global cues, Comex gold futures in New York jumped to an all-time high of USD 3,616.70 per ounce.

"Gold prices gained further and hit a fresh lifetime high in the international as well as domestic markets," said Rahul Kalantri, Vice-President of Commodities at Mehta Equities.

Kalantri attributed the rise to investor preference for safe-haven assets amid uncertainty surrounding US trade tariffs and weakness in global stock markets.

He further noted that market participants are now keenly watching the US Federal Reserve, with expectations of a possible interest rate cut this month after Fed Chair Jerome Powell signalled policy flexibility.

"The upcoming US jobs report, due on Friday, is seen as a crucial trigger for the Fed's next move," he added.

Analysts said the combination of global macroeconomic concerns, central bank cues and festive season demand in India could keep the momentum in bullion prices intact in the near term.