Gold rates rise by 0.20% as US dollar weakens
Earlier this week, both gold and silver on MCX hit fresh record highs but faced strong profit booking.
Gold prices saw an uptick in the domestic futures market on Thursday morning, driven by a slight easing in US dollar strength and treasury yields. This comes as expectations of aggressive US Federal Reserve rate cuts have softened. Benchmark 10-year US treasury yields dropped about 38 basis points to 4.22 percent, following a three-month high earlier in the week. Meanwhile, the US dollar was trading flat near its three-month high.
On the Multi Commodity Exchange (MCX), gold for December 5 expiry was trading 0.20 percent higher at Rs 77,965 per 10 grams around 9:15 am. Silver also saw gains, with MCX silver prices up 0.49 percent, trading at Rs 97,439 per kilogram.
Internationally, gold prices rose on the back of safe-haven demand. However, gains were capped due to a strengthening US dollar. On Wednesday, spot gold prices reached a record high of $2,758.37, buoyed by uncertainty surrounding the upcoming US election in 2024 and tensions in the Middle East.
Earlier this week, both gold and silver on MCX hit fresh record highs but faced strong profit booking. MCX Gold for December 5 contracts peaked at Rs 78,919 per 10 grams before closing 1 percent lower at Rs 77,868. Similarly, silver prices touched a high of Rs 1,00,081 per kilogram but finished the session down 2.92 percent at Rs 97,052.
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