Gold rate today: Yellow metal hits record high, check latest prices in your city on September 16

Gold rate today: Yellow metal hits lifetime high

Gold prices increased on September 16, hitting fresh all time highs amid rising expectations of a rate cut by the US Federal Reserve. Gold's October contracts on the Multi Commodity Exchange of India (MCX) opened at Rs 1,10,277 per 10 grams today.

Gold futures on MCX with October expiry then hit a lifetime high of Rs 1,10,548 per 10 grams. Gold futures with December expiry hit a fresh lifetime high of Rs 1,11,599 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 16:

Why are gold prices surging today?

"Gold prices scaled a record peak, supported by a weaker dollar and US Yields ahead of the Federal Reserve's policy meeting this week, where the central bank is widely expected to cut borrowing rates," said Manav Modi, Analyst – Precious Metal -Research, Motilal Oswal Financial Services.

"Dollar traded near a 2-1/2-month low against the euro; US Yields also slumped in yesterday's session hovering around 4%. Market participants are awaiting Governor Powell’s decision and remarks in this week’s policy meeting and a 25bps rate cut is expected after a long pause. In this week’s policy meeting, along with Governor Powe’s statement, dot plot and economic forecasts will also be important to watch for. U.S. President Trump called for Fed Chair Powell to enact a "bigger" cut to benchmark interest rates via social media post," he added.

Is it the right time to buy gold?

"Whether or not it is the right time to buy gold, we need to consider what our aims are. If the goal is wealth preservation and stability, gold remains a strong safe-haven asset, supported by central bank demand, low real interest rates, and geopolitical risks. However, at such a high GSR, the potential for outsized gains in gold may be limited in the near term," said Ross Maxwell, Global Strategy Lead at VT Markets.

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.