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Gold prices on MCX surged past Rs.75,000 for the first time, gaining 4.74% in September. This rally is driven by rising geopolitical tensions, particularly the Israel-Hezbollah conflict, pushing investors towards gold as a safe-haven asset. Additionally, a weakening U.S. dollar, with the dollar index dropping to 100.51, has supported gold prices. Comments from U.S. Federal Reserve officials hinting at potential rate cuts, coupled with cooling inflation, have shifted focus away from aggressive tightening. The U.S. consumer confidence index also dropped to 98.7 in September, further boosting gold's appeal amid rising global uncertainty.

Key Highlights

# Gold prices on MCX hit a lifetime high, closing above ?75,000.

# Gold gained 4.74% in September due to geopolitical tensions and Fed signals.

# The U.S. dollar weakened, dropping to 100.51, aiding gold’s rise.

# Fed officials hint at more rate cuts amid cooling inflation.

# Escalating Israel-Hezbollah conflict has heightened demand for safe-haven assets.

Yesterday, Gold prices on MCX have reached an unprecedented milestone, closing above Rs.75,000 for the first time, marking a significant 4.74% gain in September alone. The recent price surge is largely attributed to rising geopolitical tensions in the Middle East, particularly the escalating conflict between Israel and Hezbollah. Investors have flocked to gold as a safe-haven asset, with the situation in Lebanon worsening and global uncertainty mounting.

The gains in the gold market are also supported by movements in the U.S. dollar. The dollar index dropped to 100.51, its lowest in recent months, as Federal Reserve officials signaled a more accommodative monetary policy. Chicago Fed President Austan Goolsbee’s remarks about the potential for further rate cuts, supported by statements from Minneapolis and Atlanta Fed leaders, have added optimism to the market. The cooling inflation in the U.S. has further shifted focus away from aggressive monetary tightening, making gold a more attractive investment.

In addition, the U.S. consumer confidence index plummeted to 98.7 in September, down from 105.6 in August, reflecting growing concerns over economic stability. This data has further cemented the view that the Federal Reserve may need to ease its policies to support the economy, driving demand for gold as a hedge against market volatility. With the geopolitical landscape and economic conditions tilting in gold’s favor, the precious metal continues to gain ground, benefiting from its safe-haven status.

Finally, Gold’s lifetime high on MCX reflects rising global risks, with geopolitical tensions and dovish Fed signals providing strong upward momentum. Further price gains are likely amid ongoing uncertainty.

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