Gold futures hit fresh all time high levels on October 6. This comes as uncertainties over the US government shutdown, inflation and other concerns polished the safe-haven appeal of the precious metal.
Gold futures on Multi Commodity Exchange (MCX) with December expiry hit an all-time high level of Rs 1,20,075 per 10 grams today. The future contracts with February and April expiry also hit lifetime highs of Rs 1,21,350 per 10 grams and Rs 1,22,750 per 10 grams respectively.
Citywise gold rates:
Let's check the latest prices of 10 grams of 22 carat and 24 carat gold in major cities of the country on October 6:
| City | Price of 24k gold | Price of 22k gold |
| Delhi | Rs 1,20,920/10g | Rs 1,10,850/10g |
| Mumbai | Rs 1,20,770/10g | Rs 1,10,700/10g |
| Chennai | Rs 1,20,660/10g | Rs 1,10,600/10g |
| Kolkata | Rs 1,20,770/10g | Rs 1,10,700/10g |
| Bengaluru | Rs 1,20,770/10g | Rs 1,10,700/10g |
| Jaipur | Rs 1,20,920/10g | Rs 1,10,850/10g |
| Lucknow | Rs 1,20,920/10g | Rs 1,10,850/10g |
| Hyderabad | Rs 1,20,770/10g | Rs 1,10,700/10g |
| Ahmedabad | Rs 1,20,820/10g | Rs 1,10,750/10g |
"Renewed concerns over the U.S. government shutdown have reinforced safe-haven demand, keeping precious metals well-supported. Comex Silver also remained firm and is inching closer to the psychological barrier of $50, reflecting strong investor interest across the bullion complex," said Axis Securities.
'Gold is in overbought territory'
"Technically, gold is in overbought territory, but any short-term corrections that are anticipated are more likely to be the consequence of profit-taking than to be a sign of a fundamental change. The positive argument for gold is further supported by central bank purchases, rising exchange-traded fund (ETF) inflows, and persistent geopolitical worries. The $4,000 level might act as a psychological barrier, but the long-term trend is still positive as long as the fundamental factors don't alter. Using a dollar-cost averaging strategy is still a wise way for investors to take advantage of gold's reputation as a trustworthy store of value and protect themselves from risk," said Ross Maxwell, Global Strategy Lead at VT Markets.
Why are gold prices rising?
Gold prices have been climbing due to demand for safe-haven assets, inflation uncertainty, and Fed policy expectations, Maxwell said. "Jerome Powell's cautious tone initially made the dollar stronger after the Fed's recent interest rate drop, but the outlook for gold is still positive overall. The potential for stagflation, which is defined as slower economic growth coupled with constant inflation, is one factor driving up prices; further assistance is anticipated from a rate cut later on," he added.
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