The Indian gold market witnessed significant upward momentum as futures contracts climbed sharply on Thursday, reflecting positive global cues and a weakening US dollar.
Market Performance Highlights
Gold futures on the Multi Commodity Exchange (MCX) registered a substantial gain of ₹791, reaching ₹121,313 per 10 grams. This impressive rally was primarily fueled by the dollar's retreat from recent highs and firm global market signals.
What's Driving the Gold Rally?
Dollar Weakness: The US dollar's decline has made gold more attractive to international investors, as the precious metal becomes cheaper in other currencies.
Global Market Cues: International gold markets showed strength, with spot gold trading firmly in global markets, creating positive sentiment that spilled over into Indian markets.
Market Sentiment: The trading volume for the June gold contracts stood at a healthy 15,267 lots, indicating strong participation from traders and investors.
Broader Commodity Market Movement
The positive sentiment extended beyond gold, with silver futures also posting gains. July silver contracts increased by ₹1,136 to reach ₹74,990 per kg, demonstrating broad-based strength in precious metals.
Market Outlook and Analysis
Analysts suggest that the current market conditions favor further gains in gold prices. The combination of dollar weakness, global economic uncertainties, and strong market participation creates a favorable environment for precious metals. However, traders are advised to monitor international developments and currency fluctuations that could impact future price movements.
The robust performance in gold futures indicates continued investor interest in safe-haven assets amid evolving global economic conditions.
