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Informist, Wednesday, Jan. 14, 2026

 

MUMBAI – Spot gold opened higher Wednesday, tracking the record highs in the futures rates on the Multi Commodity Exchange of India and the COMEX due to geopolitical tensions and expectations of rate cuts by the US Federal Reserve this year, a trader said. 

 

Spot gold of 99.9% purity traded in the Mumbai market at INR 142,152 per 10 grams, up from INR 140,482 per 10 grams the previous day, said Kumar Jain, spokesperson at the India Bullion and Jewellers Association. With demand for the yellow metal being strong in the ongoing wedding season, there is no discount in the market, traders said.

 

Gold prices rose due to increasing safe-haven demand after US President Donald Trump said in a post on Truth Social on Tuesday that "help is on its way" for Iranians protesting against their government, in the latest sign that the US might soon take some action. "The mass protests in Iran and the violent response of the Mullah regime are providing tailwinds" for gold, Dow Jones quoted Commerzbank Research's Carsten Fritsch as saying in a note.

 

Meanwhile, US inflation moderated in December, reinforcing expectations of rate cuts by the Federal Reserve this year. The US core CPI rose 0.2% on month and 2.6% on year in December, the Labor Department said. Analysts in a Reuters poll had expected a rise of 0.3% on year and 2.7% on month. President Trump also welcomed the inflation figures, reiterating his push for the US Federal Reserve Chair Jerome Powell to cut interest rates "meaningfully," SMC Global Securities said in a report. Investors are currently anticipating two rate cuts by the US Federal Reserve this year. Gold performs well in a lower interest rate environment due to its non-interest-yielding nature. 

 

Uncertainties over the Fed's independence have also driven safe-haven demand among investors. "Global central bank chiefs and top Wall Street bank CEOs lined up in support of Powell on Tuesday after news of the Trump administration's decision to investigate him drew condemnation from former Fed chiefs and a chorus of criticism from key members of the Republican Party," CNBC reported. The US president has repeatedly attacked the Fed chair for not reducing interest rates quickly enough. Tensions escalated earlier this week when Powell issued a sharply worded video message claiming he was being prosecuted by the US Department of Justice.  End

 

US$1 = INR 90.19

 

Reported by Reshma Ravi

Edited by Tanima Banerjee

 

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