Gold futures on India's Multi Commodity Exchange soared to a fresh record high on Thursday, as they exceeded the Rs 77,000-mark for the first time.
The December contracts reached a high of Rs 77,019 per 10 grams during the evening trade. The price marginally retreated to Rs 76,761, but were higher by 0.13% as against the last closing price.
The surge in the MCX gold rates comes in the backdrop of accelerating prices of the metal in the global market. Spot gold has been inching closer to the $2,700-mark, as anticipation grows over another interest rate cut in the Nov. 7 meeting of the US Federal Reserve.
Spot gold was trading 0.2% higher at $2,680 an ounce at 08:30 a.m. (GMT-4). The US gold futures at COMEX were up 0.16% at $2,695.9 per ounce.
The expectation of a 25 basis points cut in the benchmark lending rates has soared to 94.1%, as against 5.1% who expect a status quo, as per CME Group's FedWatch.
A reduction in lending rates leads to more liquidity in the economy, which in turn raises the demand for gold, seen as one of the top safe-haven assets.
Meanwhile, gold rates are also edging higher in the Indian retail market as demand picks up ahead of Diwali. The festival is considered as auspicious by scores of Indians to buy jewellery.
The metal had hit a record high in the retail market on Wednesday. The price per 10 grams of 24-karat gold spiked to Rs 78,900, news agency PTI had reported, citing the rate shared by All India Sarafa Association.
Silver prices are on the uptrend ahead of the upcoming festive season, and breached the Rs 90,000 per kilogram-mark in the retail market on Wednesday, according to All India Bullion And Jewellers Association Ltd. The metal was trading 0.1% higher at Rs 91,600 per kilogram on Thursday, as per the rates shared by IBJA.
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