ET NEWS

Domestic gold prices on the MCX jumped to an all-time high on Tuesday, while global prices breached $3,850 per ounce, driven by safe-haven buying amid concerns over a potential US government shutdown.Gold December futures surged to a new peak of Rs 1,17,351 per 10 grams. Silver prices held firm near Rs 1,43,900 per kg, adding to the bullish momentum in precious metals.Global Market UpdateInternationally, gold climbed past $3,850 per ounce, setting a record as investors sought safety amid expectations of U.S. rate cuts, fears of a government shutdown, and rising geopolitical tensions. Spot gold rose 1.9% to $3,829.63 per ounce by 2:00 p.m. ET, after touching an all-time high of $3,833.37 earlier in the session.The surge came ahead of a crucial meeting where US President Donald Trump was scheduled to meet congressional leaders to discuss extending government funding. Without a deal, a federal shutdown would begin on Wednesday.Adding to risk-off sentiment, Russia’s defence ministry announced that its forces had taken control of Shandryholove village in Ukraine’s eastern Donetsk region. Gold, which typically performs strongly in low-interest-rate environments and during periods of uncertainty, has gained more than 43% so far this year.Domestic Market PerformanceOn Monday, gold and silver closed positively in both domestic and international markets. Gold December futures settled at Rs 1,16,344 per 10 grams, up 1.26%, while silver December futures rose 0.85% to Rs 1,43,099 per kg.At the start of the week, both metals extended gains. Gold crossed $3,850 per troy ounce for the first time, while silver hit fresh 14½-year highs.“Gold is reestablishing its dominance in global currency markets, with purchasing power at its highest since 1981 and third-highest since 1950. Global uncertainty and strong demand from central banks and ETFs are pushing gold and silver prices higher,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.Supporting FactorsU.S. pending home sales unexpectedly rose 4.0% in August, and the Dollar Index (DXY) was hovering near 97.96, supporting precious metal prices.“We expect gold and silver prices to remain volatile this week amid dollar index fluctuations, global market volatility, and ahead of U.S. non-farm payroll data. Gold is likely to trade in the range of $3,754–3,920 per troy ounce, and silver in $45.50–48.40 per troy ounce,” Jain added.How to trade gold?MCX Gold & Silver Range Recommendations by Manoj Kumar Jain- Gold: Support at Rs 1,15,650–1,15,100 | Resistance at Rs 1,17,200–1,18,000- Silver: Support at Rs 1,41,750–1,40,400 | Resistance at Rs 1,44,500–1,46,000Trade Suggestion: Buy December gold above Rs 1,16,000 with a stop loss at Rs 1,15,100 and a target of Rs 1,17,200–1,18,000.Gold rates in physical marketsGold Price Today in DelhiStandard gold (22 carat) is priced at Rs 87,448 per 8 grams, while pure gold (24 carat) is at Rs 93,960 per 8 grams.Gold Price Today in MumbaiStandard gold (22 carat) is priced at Rs 86,192 per 8 grams, while pure gold (24 carat) is at Rs 92,544 per 8 grams.Gold Price Today in ChennaiStandard gold (22 carat) is priced at Rs 86,464 per 8 grams, while pure gold (24 carat) is at Rs 92,856 per 8 grams.Gold Price Today in HyderabadStandard gold (22 carat) is priced at Rs 86,568 per 8 grams, while pure gold (24 carat) is at Rs 93,040 per 8 grams.(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Gold prices rose further to hit a fresh high on Tuesday and were poised for their best month in 14 years, as fears of a potential U.S. government shutdown and growing expectations of further U.S. interest rate cuts boosted demand for the safe-haven metal. FUNDAMENTALS Spot gold was up 0.2% at $3,842.76 per ounce, as of 0123 GMT. Bullion has risen 11.4% so far in September, on track for its best month since August 2011. U.S. gold futures for December delivery gained 0.4% to $3,872. U.S. President Donald Trump and his Democratic opponents appeared to make little progress at a White House meeting aimed at heading off a government shutdown that could disrupt a wide range of services as soon as Wednesday. Recent economic data has lifted expectations for further Federal Reserve rate cuts this year, with traders pricing in a roughly 89% chance of a 25-basis-point reduction at the next Fed meeting, according to CME Group's FedWatch tool. St. Louis Federal Reserve President Alberto Musalem said he was open to further rate cuts but the Fed must be cautious and keep rates high enough to continue to lean against inflation. Gold, often used as a safe store of value during times of political and financial uncertainty, thrives in a low interest rate environment. Investors now await U.S. data on job openings, private payrolls, the ISM manufacturing PMI and Friday's non-farm payrolls report for further clues on the economy's health. The U.S. Labor Department confirmed on Monday that its statistics agency would suspend economic data releases, including the closely-watched monthly employment report for September, in the event of a partial government shutdown. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.60% to 1,011.73 metric tons on Monday from 1,005.72 tons on Friday.

US President Donald Trump on Monday laid out a plan to end the war in Gaza and Israeli Prime Minister Benjamin Netanyahu said he backed the proposal.The two allies demanded approval by Hamas, whose October 7, 2023 attack triggered a massive Israeli offensive, with Netanyahu warning he will "finish the job" if Hamas says no.Here are the key points:WAR ENDS AND HOSTAGES RELEASEDIsrael will immediately suspend military operations once the two sides agree, and Hamas then will have 72 hours to return all October 7 hostages including the remains of those who are dead. Israel in turn will free 250 Palestinian prisoners serving life sentences, 1,700 Gaza residents detained in the war, and the remains of 15 Palestinians for the remains of each dead hostage.Israel will eventually withdraw from Gaza in phases.TRUMP TO HEAD TRANSITION BODYTrump himself will become chair of a transitional "Board of Peace" in Gaza that will include former British prime minister Tony Blair.The board will consider "exciting development ideas" and turn the war-ravaged territory into a special economic zone with preferential tariff rates.Trump has previously spoken of developing property in the Mediterranean territory, where virtually the entire population of two million has been displaced by war that has reduced most buildings to rubble.NO FORCED DISPLACEMENTContrary to calls by right-wing Israeli government ministers, Palestinians would not be forced to leave Gaza and Israel will not annex the territory.Instead, the plan says that the transitional body will "encourage people to stay and offer them the opportunity to build a better Gaza."NO ROLE FOR HAMAS BUT CONDITIONAL AMNESTY Hamas, which took control of Gaza in 2007, will play no role in future governance.However, Hamas members will be granted amnesty if they commit to "peaceful coexistence" and decommission their weapons. Hamas members will also be allowed safe passage to leave Gaza.INTERNATIONAL STABILIZATION FORCE The plan calls for an "international Stabilization Force" to deploy immediately in Gaza, with support from Arab states.The force will train Palestinian police in Gaza and work to ensure security with Israel and neighboring Egypt.Indonesia has previously voiced willingness to contribute troops.UNCLEAR FUTURE FOR PALESTINIAN AUTHORITY, STATE The plan does not rule out a Palestinian state, despite Netanyahu's longtime vows to fight one, including after recent recognition of a State of Palestine by France, Britain and other powers."The conditions may finally be in place for a credible pathway to Palestinian self-determination and statehood, which we recognize as the aspiration of the Palestinian people," the plan says.The plan also suggests allowing a role for the Palestinian Authority once it has "completed its reform program" and points to a French-backed initiative to strengthen the Ramallah-based body, which opposes Hamas.But Netanyahu in remarks alongside Trump said he saw "no role whatsoever" for the Palestinian Authority without it "undergoing a radical and genuine transformation."

Mumbai: Purchases of Indian bonds by overseas investors slowed in September after rising over the past two months as a fall in the rupee made investors cautious.The rupee, which is the worst performing currency among in Asia this year, has been under pressure mostly through September on mounting worries of higher US tariffs. On September 23, it fell to a fresh record low of 88.7975 per dollar. A weak rupee erodes returns for foreign portfolio investors.Net inflows in the fully accessible route (FAR) on government securities slowed to around ₹6,665 crore in September (until Sep 29), from ₹10,470 crore a month ago, data on CCIL showed.Securities in the FAR category are eligible for inclusion in the global bond indices, and these papers are fully open for investment without restrictions.124223072"If we get another round of rupee weakness, then people would worry and want to defer their purchase for some more time. The pace of decline should be orderly and it should provide competence to investors. If it is abrupt, then some of these flows can stay away," said Abhishek Upadhyay, senior economist, fixed income strategy, ICICI Securities PD.The country has also been an underperformer in foreign inflows into the continent, with flows going toward China within the Asian region, amid global and domestic uncertainties.“Although, we have received some money on the debt side, India has underperformed. First, we had the geopolitical issue of India-Pakistan, then the larger than expected 50% tariffs by the US. Most of the flows have moved towards China in the Asian region,” Upadhyay said. On the other hand, positioning ahead of the Reserve Bank of India monetary policy decision, which will be detailed on Wednesday, and brief appreciation in the local currency as dollar weakened ahead of the US Federal Reserve’s September meeting supported buying of Indian government bonds during the month, bank treasury officials said. According to an ET poll, even as majority expect RBI to hold rates at 5.50% on October 1, there is also a significant minority that expects another 25 basis point cut Earlier this month, Bloomberg Index Services sought views on whether Indian government bonds should be included in its global index. Traders however do not expect any immediate impact as the decision—positive or negative—will take at least a year.

Mumbai: Tata Capital, among the top three diversified financial services companies owned by India's largest conglomerate, will consider a fresh round of dilution in equity only after two-and-a-half to three years, a top official at the Tata Group entity said.The proposed ₹15,512-crore IPO, which will open for subscription early next week, will result in an 11.21% dilution in the promoter's stake. Tata Group owns 95.8% in the company, and of this Tata Sons holds 88% stake. The proposed IPO is the largest from the Tata group to date. "The capital we raise and the profits we will earn will support us for growth over the next two-and-a-half to three years and I think post (that), we may need infusion of capital," CEO Rajiv Sabharwal said in an interview with ET.The issue, priced between ₹310 and ₹326 apiece, is substantially below the price of the unlisted shares (at ₹735) and July's ₹1,752-crore rights issue, which was at ₹343 apiece."Our whole idea was to have a much larger base of retail investors. The IPO is the time when new investors come in. So the board felt that if we give a discount compared to the last rights price, then we will have a much larger base of investors in our IPO. And that was the sole objective," Sabharwal explained. After the IPO, the company's capital adequacy will increase to 22% (from 17% at the end of March 2025).Tata Capital has expanded to about 1,500 branches, most of them added in the last three years or so. Sabharwal said Tata Capital does not expect to add branches at the same pace, having fronted a lot of investment in the branches as well as technology. This means that as a percentage of income, expenses will keep coming down.Vocal for LocalSabharwal said with the company's lending being local, 90% of the borrowing comes from local sources, such as bank loans and bonds placed in the domestic market. "We also look at ECBs and bonds (overseas). About 10% of our borrowing is through overseas. But we will ensure that the cost of funds remains low," he said.In January this year, the company had raised $400 million through its first fixed-rate senior unsecured 3.5-year bond at a coupon rate of 5.38%. This issuance was part of a larger medium-term notes (MTN) programme to raise up to $2 billion.The company is the third largest NBFC by loan book at ₹2.33 lakh crore-behind ₹2.70 lakh crore at Shriram Finance and ₹4.14 lakh crore of Bajaj Finance. "Retail loans will continue to be 88% to 90% of our loan book. We also are not seeing stress anywhere in terms of credit costs. It is fairly benign for us because wherever we see stress, we are very quick to act. And just because we are present in multiple productions, even if we become conservative in one, it really doesn't make a difference because we have multiple engines which can grow for us," Sabharwal said.