1 week ago
MCX Gold Rallies Fifth Straight Week, August Gains Reach ₹19,000
Gold prices in India rose for the fifth week in a row.
They gained about ₹8,000 this week alone.
Gold has now risen about ₹19,000 during August.
A weaker U.S. dollar made gold more attractive to buyers using other currencies.
Investors also expected the Federal Reserve to be less likely to raise interest rates soon.
Silver prices rose strongly too.
An analyst said gold could keep rising if the Federal Reserve sounds calm or supportive.
However, gold has risen quickly, so a disappointing message from the Federal Reserve or a stronger dollar could cause prices to fall.
MCX gold gained nearly ₹8,000 per 10 grams this week, settling at ₹1,62,438.
Gold’s August gain reached 13.3%, or about ₹19,000 per 10 grams, while its year-to-date return reached 20%.
The U.S. dollar’s decline and reduced expectations of an immediate Federal Reserve rate hike supported bullion demand.
Gold remains about 10% below its January record high of ₹1,80,779, narrowing the gap from roughly 21% earlier this month.
Silver gained ₹10,673 for the week to settle at ₹2,48,124 per kilogram, while analysts warned that gold’s rally may be overextended.
- Who
- Gold and silver traders, supported by demand from investors, with market expectations focused on the U.S. Federal Reserve.
- What
- MCX gold extended its winning streak to five weeks, gaining nearly ₹8,000 this week and ₹19,000 in August.
- Where
- On India’s Multi Commodity Exchange of India, with wider markets influenced by U.S. dollar and Treasury developments.
- When
- During the latest trading week and through August; the article does not provide specific calendar dates.
- Why
- A weaker U.S. dollar and reduced expectations of an immediate Federal Reserve rate hike supported bullion demand; risks include elevated Treasury yields, higher oil prices and a possible stronger dollar.
Bullish outlook
Risks and caution
Near-term price direction
Bullish outlook
Ponmudi R of Enrich Money said precious-metals conditions remain constructive, and gold and silver could benefit from reduced expectations of immediate Federal Reserve tightening.
Risks and caution
Higher Treasury yields, inflationary pressure from higher oil prices and a possible rebound in the U.S. dollar could pressure bullion.
Federal Reserve speech
Bullish outlook
A dovish or neutral tone from Federal Reserve Chair Kevin Warsh at Jackson Hole could reinforce expectations of a policy pause or eventual easing and extend support for gold.
Risks and caution
A hawkish surprise could strengthen the U.S. dollar and put renewed pressure on gold and silver.
Technical momentum
Bullish outlook
The trend remains bullish, with higher highs and a rising weekly relative strength index, according to Ponmudi.
Risks and caution
The daily relative strength index was 76.10, in overbought territory, suggesting the rally may be extended and vulnerable to a deeper correction.
Key facts
- Gold weekly settlement
- ₹1,62,438 per 10 grams
- Gold weekly gain
- Nearly ₹8,000 per 10 grams
- August gold gain
- 13.3%, or about ₹19,000 per 10 grams
- Gold year-to-date return
- 20%
- January record high
- ₹1,80,779 per 10 grams
- Silver weekly settlement
- ₹2,48,124 per kilogram after gaining ₹10,673
- Gold technical resistance
- ₹1,62,500–₹1,63,000; a sustained close above ₹1,63,000 could point toward ₹1,65,000
- Gold technical support
- ₹1,58,500–₹1,59,000, followed by ₹1,55,500–₹1,56,000
Sources
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