Gold surges to record high: October futures hit Rs 1.07 lakh on MCX — time to invest?

Gold futures for October delivery have risen substantially, climbing approximately Rs 6,500 within the last month to achieve an unprecedented Rs 1,07,807 per 10 grams on the Multi Commodity Exchange (MCX) on Friday.The upward movement persists despite recent profit collection preceding vital US employment statistics, whilst global economic uncertainty and central bank purchases continue to provide robust backing to the precious metal.Both gold and silver experienced profit collection from their peak levels before the US employment report publication. Investors secured their gains in both precious metals prior to the non-farm payroll data release.While the dollar index remains positioned above 98, international uncertainties stemming from US trade tariffs and continuous central bank acquisitions are providing support to precious metals, according to Economic Times analysis.The anticipated interest rate reductions at the Federal Reserve's forthcoming meeting have contributed to positive sentiment, as reduced interest rates typically enhance the appeal of non-yielding assets such as gold.Jateen Trivedi, VP Research Analyst- Commodity and Currency, LKP Securities, said, "Investors remain focused on the Fed's September meeting where rate cuts are anticipated, while ongoing tariff uncertainties are fueling safe-haven demand. Together, these factors continue to keep bullion in a bullish structure."He maintains that gold's broader outlook remains favourable provided prices remain above Rs 1,06,450, with potential advancement towards resistance near Rs 1,07,260."A decisive break above this could open the path for further gains, while only a fall below Rs 1,06,150 would signal weakness," he added.Analysts maintain careful optimism as gold trades near its highest recorded value. Substantial central bank demand, potential US Federal Reserve rate reductions, and geopolitical uncertainties support the current surge.In domestic markets, activity on the Multi Commodity Exchange has been influenced by investment flows into gold futures, with technical parameters offering additional price support.Analysts believe the broader trajectory remains positive while prices maintain above crucial levels, with resistance points that could enable new record values if surpassed.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)