Gold rate today: Yellow metal hits fresh record high, check latest prices in your city on September 23

Gold rate on September 23

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Gold prices soared to fresh record highs on September 23 after US Federal Reserve Governor Stephen Miran said the American central bank's benchmark interest rate is too high, and should be slashed aggressively.

Gold futures on Multi Commodity Exchange (MCX) with October expiry hit a fresh lifetime high of Rs 1,13,200 per 10 grams. Contracts with December expiry meanwhile hit a lifetime high of Rs 1,14,250 per 10 grams. Let's check the latest prices of 10 grams of 22 carat and 24 carat gold in major cities of the country on September 23:

City-wise gold rates on September 23:

'Gold traders bet on two more rate cuts by Fed'

Ross Maxwell, Global Strategy Lead at VT Markets, said numerous bullish signals for gold persist. "The deceleration of U.S. economic growth, enduring risks associated with inflation, robust demand from central banks, and projections of additional rate cuts later this year collectively bolster gold's long-term prospects," he said.

What did Fed Reserve Governor Stephen Miran say? 

Federal Reserve Governor Stephen Miran said that his view of monetary policy diverges from the other FOMC members, and he sees the current policy as ‘restrictive’ which risks Fed's employment mandate.

"I believe the appropriate fed funds rate is in the mid-2 percent area, almost 2 percentage points lower than current policy. The Federal Reserve has been entrusted with the important goal of promoting price stability for the good of all American households and businesses, and I am committed to bringing inflation sustainably back to 2 percent. However, leaving policy restrictive by such a large degree brings significant risks for the Fed's employment mandate," he said.

"The upshot is that monetary policy is well into restrictive territory. Leaving short-term interest rates roughly 2 percentage points too tight risks unnecessary layoffs and higher unemployment," he concluded.

After his comments, analysts expect more rate cuts this year. According to the CME FedWatch tool, 89.8 percent of traders are pricing in a 25-basis-point cut by the American central bank at its October FOMC meeting, and 74 percent are pricing in a 50-basis point cut at the December meeting.

What analysts say?

Heightened geopolitical tensions, the prospect of rate cuts and persistent economic uncertainty drove investors toward safe-haven assets, reinforcing bullish momentum in the yellow metal, said Axis Securities. "Attention now turns to the Fed Chair's speech later today, which is expected to add volatility during the evening trade," it said.

"We have seen gold rally due to 2 key factors, first being the need for an alternate the dollar as dollar falls in value and second is more geopolitical with countries looking at decouple themselves from US treasuries. This had led to demand from not only retail and institutional investors but central banks as well," said Shravan Shetty, Managing Director, Primus Partners.

Also read: Gold, silver hit record highs as traders bet on US rate cuts

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.