0 months ago
Gold Futures Surge ₹2,165 to ₹1.46 Lakh on Safe-Haven Demand
Gold is a shiny metal that many people like to buy when they feel worried about the world.
When lots of people want to buy it, its price goes up.
This week, gold prices in India went up again for the second day in a row.
On Wednesday, the price for 10 grams of gold rose by 2,165 rupees to about 146,464 rupees.
People wanted gold because there is uncertainty in the world, including a war between the US and Iran.
The US dollar also became weaker, which helped push gold prices higher.
Around the same time, India's central bank, called the RBI, decided to keep its interest rate at 5.25 per cent.
The RBI wants to support the economy while watching how fast prices are rising.
Gold prices also rose around the world, with December futures in New York jumping to about 4,226 dollars per ounce.
Some experts say a possible deal to reopen the Strait of Hormuz could lower oil prices and reduce worries about rising prices.
Gold futures on the Multi Commodity Exchange (MCX) rose for a second straight session on Wednesday, climbing Rs 2,165, or 1.5 per cent, to Rs 1,46,464 per 10 grams.
Analysts attributed the rally to increased safe-haven buying amid renewed geopolitical uncertainty and a weaker US dollar.
The Reserve Bank of India kept its benchmark repo rate unchanged at 5.25 per cent for a fourth consecutive policy meeting.
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.
Choice Broking analyst Pinky Yadav said optimism over a potential agreement to reopen the Strait of Hormuz eased geopolitical tensions, pushed oil prices lower and reduced inflation concerns.
- Who
- Investors and traders in gold futures, the Reserve Bank of India (which kept its repo rate at 5.25 per cent), and analysts Gaurav Garg (Lemonn Markets Desk), Ajitabh Bharti (CapitalXB) and Pinky Yadav (Choice Broking).
- What
- Gold futures surged Rs 2,165 (1.5 per cent) to Rs 1,46,464 per 10 grams on MCX, tracking a global bullion rally driven by safe-haven demand and a weaker dollar.
- Where
- On India's Multi Commodity Exchange, tracking international markets on Comex in New York.
- When
- Wednesday, marking a second straight session of gains.
- Why
- Renewed geopolitical uncertainty, a weaker US dollar, and easing inflation concerns from softer crude prices following optimism over a possible agreement to reopen the Strait of Hormuz.
Key facts
- MCX October gold futures
- Rs 1,46,464 per 10 grams, up Rs 2,165 (1.5 per cent)
- Comex December gold futures
- USD 4,226.50 per ounce, up USD 73.90 (nearly 2 per cent)
- RBI repo rate
- Unchanged at 5.25 per cent for a fourth consecutive policy meeting
- Session of gains
- Second straight session
- Key drivers
- Safe-haven buying, weaker US dollar, geopolitical uncertainty, softer crude prices
- Geopolitical context
- Ongoing US-Iran war; optimism over a potential agreement to reopen the Strait of Hormuz
- Markets
- Multi Commodity Exchange (MCX) in India; Comex in New York
Quotes
Ajitabh Bharti
Co-founder & Executive Director at CapitalXB
“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.”
freepressjournal.in
“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.”
freepressjournal.in
thehansindia.com
Sources
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