Gold prices rose by Rs 531 to Rs 76,445 per 10 grams in futures trade on Monday as participants increased their bets on the back of a firm trend in international markets.
Gold Futures Performance
On the Multi Commodity Exchange (MCX), gold contracts for June delivery traded higher by Rs 531, or 0.70 per cent, at Rs 76,445 per 10 grams in a business turnover of 6,647 lots. The rise was driven by a positive trend in global markets, where gold prices climbed amid a weaker US dollar and expectations of a pause in interest rate hikes by the US Federal Reserve.
Silver Prices Also Rise
Silver also witnessed a similar uptrend. Silver futures for July delivery rose by Rs 1,110, or 1.20 per cent, to Rs 93,000 per kg on the MCX. The white metal gained traction following the bullish momentum in gold and other base metals.
Global Market Impact
Internationally, gold prices edged higher in the spot market. Spot gold was up 0.5 per cent at $2,372.29 per ounce as of 0325 GMT. The dollar index, which measures the greenback against a basket of six major currencies, slipped 0.1 per cent, making gold cheaper for holders of other currencies. Market participants are now eyeing the US consumer price index (CPI) data due later this week for further cues on the Federal Reserve's monetary policy path.
According to analysts, the uptick in gold prices was attributed to a weaker dollar and falling US Treasury yields, which increased the appeal of the yellow metal. Additionally, geopolitical tensions in the Middle East continued to support safe-haven demand for gold.
Market Outlook
Analysts expect gold prices to remain volatile in the near term, influenced by macroeconomic data releases and central bank actions. The focus will be on the US CPI report, which could impact the Fed's rate decision. Any indication of easing inflation might boost gold prices further, while a strong reading could weigh on the metal.
In the domestic market, physical gold prices in Delhi and Mumbai also mirrored the futures trend, with 24-carat gold selling at around Rs 76,500 per 10 grams. Dealers reported steady demand from jewelers and retailers ahead of the wedding season.
Overall, the precious metals complex is expected to trade with a positive bias, supported by a weaker dollar, safe-haven demand, and expectations of a dovish Fed stance.
