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

MUMBAI: Rallying for the fourth consecutive session, gold futures contracts expiring in August, October, and December on the Multi Commodity Exchange (MCX) topped the Rs 1 lakh/10gram mark on Tuesday. In spot markets across the nation, the dear steel was buying and selling just below that mark.
The upsurge within the yellow steel’s price got here after its value in worldwide markets crossed the psychologically vital $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, world commerce uncertainties, a weakening greenback, and central banks’ buy of gold.

“The rally in gold prices continues to be fuelled by the US Federal Reserve’s reluctance to cut interest rates immediately, despite growing pressure from Trump, who has been vocal about rate cuts,” stated Jateen Trivedi of LKP Securities.
“This divergence has further enhanced gold’s appeal as a safe haven, pushing prices to fresh lifetime highs in both Comex and MCX.” However, with costs at file ranges, intraday volatility is prone to persist, Trivedi cautioned.
According to Satish Dondapati of Kotak Mahindra MF, one more reason for the current rise in gold costs is the weakening US greenback and escalating world commerce issues.
Since globally gold is priced in {dollars}, a weak buck means traders in different main currencies might purchase the yellow steel cheaper.
Given gold’s haven character, world uncertainties-economic and geopolitical-help costs transfer north.
So far in 2025, the value of the yellow steel within the worldwide market is up almost 32%, whereas within the Indian market, the rise has been barely decrease, at 30%.
This is due to the appreciation of the rupee in opposition to the greenback this 12 months.