Gold prices surged to unprecedented levels on Tuesday, marking the strongest monthly performance since August 2011 with an 11.4 percent increase throughout September. The precious metal climbed to 1,15,450 rupees per 10 grams of 24-carat gold, while U.S. futures contracts advanced 0.4 percent to reach 3,872 dollars. Fears surrounding a possible federal government closure, combined with anticipated Federal Reserve interest rate reductions, drove the rally. Market participants assigned an 89 percent probability to a quarter-point rate decrease at the central bank's next policy meeting.
The yellow metal extended its winning streak against Indian stocks for a fourth straight Diwali period, while silver similarly exceeded equity returns for three consecutive years. Strong central bank acquisitions, along with exchange-traded fund investments, continued bolstering bullion markets. Traders awaited employment figures, private payroll numbers, and manufacturing data to assess economic conditions.
The yellow metal extended its winning streak against Indian stocks for a fourth straight Diwali period, while silver similarly exceeded equity returns for three consecutive years. Strong central bank acquisitions, along with exchange-traded fund investments, continued bolstering bullion markets. Traders awaited employment figures, private payroll numbers, and manufacturing data to assess economic conditions.
