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Gold prices scaled a record peak on Tuesday, supported by a weaker dollar ahead of the Federal Reserve's policy meeting this week, where the central bank is widely expected to cut borrowing rates. Spot gold rose 0.1% to $3,680.17 per ounce as of 0109 GMT, after hitting a record high of $3,689.27 earlier in the session. U.S. gold futures for December delivery were flat at $3,718.80. The dollar traded near a 2-1/2-month low against the euro and close to a 10-month trough versus the risk-sensitive Aussie. A weaker greenback makes gold less expensive for other currency holders. U.S. President Donald Trump, in a social media post on Monday, called for Fed Chair Jerome Powell to enact a "bigger" cut to benchmark interest rates. Traders are pricing in a near-certain 25-basis-point (bps) rate cut at the end of the two-day meeting on September 17, with a small chance of a 50 bps reduction, per the CME FedWatch tool. Lower interest rates reduces the opportunity cost of holding non-yielding bullion. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund (ETF), said its holdings rose 0.21% to 976.80 tonnes on Monday from 974.80 tonnes on Friday. Meanwhile, on Monday, a U.S. appeals court refused to allow Donald Trump to fire Fed Governor Lisa Cook - the latest step in a legal battle threatening the Fed's longstanding independence. Elsewhere, spot silver held steady at $42.71 per ounce, platinum eased 0.1% to $1,399.40, and palladium gained 0.4% to $1,188.59.

Mumbai: Lower-income borrowers, who typically depend on small-ticket loans, are increasingly moving away from microfinance institutions (MFIs) and turning to gold loans for immediate requirements. This shift is driven by soaring gold prices, lower gold loan rates and higher scrutiny by MFIs in sanctioning new loans. According to data from the Reserve Bank of India (RBI), loans against gold surged 122% year-on-year as of June while data from the Microfinance Industry Network show outstanding microfinance loans declined 16.5% during the same period."Many customers who previously relied on unsecured loans have found that route increasingly inaccessible," said Sanchay Sinha, chief general manager and head - retail at South Indian Bank. "With limited options for additional funding, they are now monetising their gold assets to meet financial needs." With an aim to reduce over-indebtedness and improve asset quality, the MFI industry had introduced three lender exposure-cap on a single borrower beginning this financial year. 123911080The number of such borrowers queuing up at more than three financiers fell to 3.1 million at the end of June from 5.7 million a year earlier, according to CRIF High Mark data. This shift in stance by MFI is the key driver to pledge family jewel, experts said.As of July 2025, outstanding loans against gold jewellery stood at ₹2.94 lakh crore, marking a 122% increase year-on-year. In comparison, unsecured credit card loans grew just 6% to ₹2.91 lakh crore, and personal loans rose 8% to ₹15.36 lakh crore, RBI data showed. Meanwhile, total assets under management (AUM) of MFIs fell to ₹1.34 lakh crore, down 16.5% from a year earlier.Gold prices have surged 44.14% in 2025, currently trading at ₹1,13,800 per 10 grams, up from ₹78,950 on December 31, 2024, according to Reuters.Shift in Gold Loan PerceptionExperts note a shift in the traditional perception of gold loans, which were once seen as a last resort during financial distress. Today, gold loans are increasingly viewed as a convenient and mainstream financial tool."We're seeing strong demand from western states like Gujarat and Maharashtra, as well as eastern regions such as Odisha," said Kamal Sabhlok, head - secured lending and microfinance at RBL Bank. "Cultural affinity for gold and higher household gold holdings are contributing to this trend. Gold loans are no longer stigma-driven, but are now seen as a practical financing option," he said.Sinha of South Indian Bank said growth rates in gold loans from the West, North, and East have outpaced those in southern India.Lower interest rates are a key factor driving this shift. Gold loans, being secured, typically carry interest rates between 10-15%, significantly lower than MFI loans, which often exceed 20%.

New Delhi: An increase in the US military activities in Bangladesh's strategically placed Chittagong area, located close to borders of India and Myanmar, has raised eyebrows as it may have implications beyond Bangladesh. A modern tactical transport aircraft of the US Air Force, a C-130J Super Hercules, which usually operates from Yokota Airbase in Japan, landed at the Shah Amanat International Airport in Chittagong on Sunday in what was the latest development involving the US military in the area. The landing of the aircraft in Chittagong is not a mere coincidence as reports have emerged of the role of extra-regional players in the area with interests in India's northeastern region and Myanmar, claimed sources familiar with the region. Myanmar rebels are being wooed by both the US and China.Ever since the Muhammad Yunus-led regime came to power, the US military has often been seen visiting the area, either for surveys or joint exercises. A few months back, US and Bangladesh held bilateral military exercises - Operation Pacific Angel-25 and Tiger Lightning-2025 in Chittagong. Sources informed that yet another US-Bangladesh joint exercise is being planned in the Chittagong area with a batch of US troops landing in the area last week. Last month, the body of a US Special Forces Command (Airborne) officer was found in a posh Dhaka hotel. The Bangladesh military has not been comfortable with the presence of US troops in the country apart from the joint exercise.There have been allegations about the US role in orchestrating anti-Hasina movement that led to ouster of the Bangladesh PM through "street revolution" in August 2024. Hasina had alleged that she was ousted for her refusal to hand over St Martin's Island to the US.123907506