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MCX gold extends rally, books fifth straight week of gains
MCX gold settled at ₹1,62,438 per 10 grams, with August gains reaching 13.3% as expectations for a smaller US Federal Reserve rate hike eased dollar pressure.
MCX gold in India extended its rally for a fifth straight week, lifting August performance into double digits amid a persistent decline in the US dollar, which makes bullion cheaper for holders of other currencies, according to LiveMint Markets. The metal settled at ₹1,62,438 per 10 grams after adding nearly ₹8,000 per 10 grams for the week, its highest level in more than three months.
LiveMint Markets also tied the upward momentum to reduced expectations for a Federal Reserve rate hike ahead of its upcoming meeting. Even with crude oil climbing to a one-month high earlier in the week, the sentiment around US rates continued to support gold buying, the outlet said.
The latest move further narrowed gold’s drawdown from its record high of ₹1,80,779 touched in January, with prices trading about 10% below that peak. Alongside gold, silver also closed higher, gaining ₹10,673 to settle at ₹2,48,124 per kilo, as demand recovered.
The dollar fell to a three-month low earlier this week, with attention on US Treasury plans to expand buybacks of longer-dated government debt. LiveMint Markets noted that long-dated Treasury yields jumped, and traders pointed to concerns over the fiscal outlook, heavy debt issuance, geopolitical risks from the war involving Iran, and uncertainty around the Fed, as US national debt has reportedly surpassed $40 trillion.
Latest closeGold $4,432.00 ▲1.6%|Silver $64.83 ▼0.1%|WTI crude $82.40 ▲1.4%