Gold fever: Futures high Rs 1L/10gm mark

MUMBAI: Rallying for the fourth consecutive session, gold futures contracts expiring in August, October, and December on the Multi Commodity Change (MCX) topped the Rs 1 lakh/10gram mark on Tuesday. In spot markets across the nation, the valuable steel was buying and selling slightly below that mark.
The upsurge within the yellow steel’s price got here after its worth in worldwide markets crossed the psychologically necessary $3,500/ounce mark early within the day.
The rally was fuelled by a mix of things, together with rising fears a couple of showdown between US President Donald Trump and US Federal Reserve chairman Jerome Powell, international commerce uncertainties, a weakening greenback, and central banks’ buy of gold.

“The rally in gold costs continues to be fuelled by the US Federal Reserve’s reluctance to chop rates of interest instantly, regardless of rising strain from Trump, who has been vocal about price cuts,” stated Jateen Trivedi of LKP Securities.
“This divergence has additional enhanced gold’s attraction as a protected haven, pushing costs to recent lifetime highs in each Comex and MCX.” Nonetheless, with costs at report ranges, intraday volatility is prone to persist, Trivedi cautioned.
In line with Satish Dondapati of Kotak Mahindra MF, another excuse for the current rise in gold costs is the weakening US greenback and escalating international commerce considerations.
Since globally gold is priced in {dollars}, a weak dollar means buyers in different main currencies might purchase the yellow steel cheaper.
Given gold’s haven character, international uncertainties-economic and geopolitical-help costs transfer north.
To this point in 2025, the value of the yellow steel within the worldwide market is up practically 32%, whereas within the Indian market, the rise has been barely decrease, at 30%.
That is due to the appreciation of the rupee towards the greenback this 12 months.