Gold climbs Rs 119 to trade near record high ahead of US Federal Reserve policy decision

New Delhi: Gold prices climbed Rs 119 to trade near a record high of Rs 1,10,298 per 10 grams in the domestic futures market on Tuesday, tracking strong global cues as investors positioned ahead of an expected US Federal Reserve rate cut this week.

On the Multi Commodity Exchange (MCX), the most traded gold futures for October delivery rose Rs 119 or 0.10 per cent to Rs 1,10,298 per 10 grams. The contract had touched a record high of Rs 1,10,330 per 10 grams in the previous session.

Similarly, the December contract advanced Rs 109 to Rs 1,11,346 per 10 grams on the MCX, after scaling a fresh peak of Rs 1,11,350 per 10 grams on Monday.

According to the Commodities market experts, the gold prices maintained their upward momentum as traders bet on a rate cut by the Fed in its policy decision on September 17, while also looking for signals on further monetary easing through the rest of the year.

In the international market, gold futures for December delivery surged to an all-time high of USD 3,728.32 per ounce, underpinned by expectations of looser US monetary policy and sustained demand for safe-haven assets amid global economic uncertainty.

"Gold has been witnessing strong investor interest in recent weeks, with prices scaling multiple records both in domestic and overseas markets. Traders said that while some profit-booking cannot be ruled out at higher levels, the overall trend remains positive," an expert said.