Gold Jumps ₹1,850, Silver Up ₹2,050 on MCX as Cooling US Yields and Weaker Dollar Spark Buying Rush
Summarized by AI; it may make mistakes. Check important info
Summarized by AI; it may make mistakes. Check important info
Gold and silver prices posted sharp gains on the Multi Commodity Exchange (MCX) on Wednesday, tracking a global rally in precious metals as dropping US Treasury yields and a weakening dollar pushed investors back towards traditional safe havens.
On the MCX, gold October futures surged by ₹1,849, or 1.20%, to reach ₹1,56,111 per 10 grams. Silver September futures tracked the upward momentum, rising by ₹2,055, or 0.88%, to trade at ₹2,34,474 per kilogram.
The domestic rally mirrored a strong recovery on the COMEX, where spot gold advanced 1.25% to trade around $4,476.00 per ounce, while international silver jumped 1.73% to $65.145 per ounce.
US Dollar Loses Rate Cushion as Yields Ease
Wednesday's surge follows a brief slide earlier in the week, caused by a global bond sell-off that pushed the US 30-year Treasury yield to a 19-year peak of 5.32%. Elevated yields typically dampen demand for non-yielding assets like bullion by making debt instruments more attractive.
That trend reversed as long-term yields pulled back from multi-year highs. At the same time, the US dollar came under pressure as traders scaled back expectations for further Federal Reserve rate hikes following softer US economic data, including cooling payrolls, retail sales, and inflation figures. Analysts note that the greenback is rapidly losing its "front-end rate cushion," forcing investors to seek refuge in precious metals.
Persistent geopolitical unrest in the Middle East and lingering concerns over energy-linked inflation—exacerbated by unresolved friction around the Strait of Hormuz—continue to provide a solid floor for bullion prices.
Markets Wait for Federal Reserve Signals
Trading desks across Mumbai, Delhi, and global financial centres are watching for the release of the US Federal Reserve's July meeting minutes. Traders are scouring the text for hints on the central bank's upcoming interest rate decisions.
While fluctuating bond yields may trigger near-term volatility, market analysts believe precious metals retain underlying strength. Investor focus is already shifting to the Jackson Hole Economic Symposium, where impending policy remarks could dictate commodity price trends right as India enters its high-demand festive shopping season.
