Gold futures jump Rs 2,165 on strong global cues
Gold futures rose for the second straight session, gaining Rs 2,165 per 10 grams on the MCX amid strong overseas markets, renewed safe-haven demand, a weaker US dollar and easing inflation concerns, while investors awaited key US economic data and central bank signals
New Delhi: Gold futures climbed for the second straight session on Wednesday, rising by Rs 2,165 to Rs 1.46 lakh per 10 grams, tracking a sharp rally in overseas markets amid renewed demand for the precious metal.
On the Multi Commodity Exchange, the October contract of the metal jumped by Rs 2,165, or 1.5 per cent, to Rs 1,46,464 per 10 grams.
“Gold extended its gains for the second straight session on Wednesday as investors increased safe-haven buying following renewed geopolitical uncertainty and a weaker US dollar,” said Gaurav Garg, Head of Research at Lemonn Markets Desk.
The rally also coincided with the Reserve Bank of India’s decision to keep its benchmark repo rate unchanged at 5.25 per cent for a fourth consecutive policy meeting, as policymakers sought greater clarity on the inflationary impact of higher energy prices.
Ajitabh Bharti, Co-founder & Executive Director at CapitalXB**,** said the RBI’s current stance of keeping the policy rate on hold appears well balanced.
“While the ongoing US-Iran war continues to cast a shadow over the global inflation outlook, the RBI is likely to remain focused on supporting growth while monitoring inflation carefully,” Bharti said.
In the international markets, Comex gold futures for the December contract gained USD 73.90, or nearly 2 per cent, to USD 4,226.50 per ounce in New York.
“Bullion prices extended their rally, with Comex gold rising above USD 4,100 per ounce, driven by optimism over a potential agreement to reopen the Strait of Hormuz, which eased geopolitical tensions and pushed oil prices lower, reducing inflation concerns,” said Pinky Yadav, Commodity Fundamental Analyst at Choice Broking.
Garg said softer crude prices have eased near-term inflation concerns, while investors remain focused on upcoming US macroeconomic data and central bank commentary for further direction in commodity markets.
