Gold prices climbed in futures trading on Thursday as investors turned to safe-haven assets amid rising global economic uncertainty. On the Multi Commodity Exchange (MCX), the yellow metal for August delivery appreciated by Rs 926, or 0.58 per cent, to settle at Rs 1,59,445 per 10 grams.
The surge in gold prices reflects heightened risk aversion among market participants, driven by geopolitical tensions and concerns over global economic growth. Analysts noted that the ongoing uncertainty has bolstered demand for precious metals as a store of value.
Gold has traditionally been considered a safe investment during times of market volatility. The latest price movement aligns with a broader trend of investors shifting away from riskier assets like equities toward commodities such as gold and silver.
Market experts suggest that the trajectory of gold prices will depend on upcoming economic data and central bank policies. If global uncertainties persist, gold could see further upward momentum. However, any resolution of key geopolitical issues might lead to profit-booking and a temporary pullback.
The rise in gold futures also comes amid a weaker dollar index, which makes dollar-denominated commodities cheaper for holders of other currencies. Additionally, expectations of a pause in interest rate hikes by major central banks have supported non-yielding assets like gold.
On the MCX, silver futures also traded higher, mirroring gold's gains. The precious metals complex continues to attract investor interest as a hedge against inflation and currency depreciation.
Looking ahead, traders will monitor global cues, including US economic data and developments in trade negotiations, for further direction. The safe-haven appeal of gold is likely to remain intact in the near term, given the prevailing macroeconomic headwinds.
