Dollar Weakness Boosts Indian Gold and Silver Prices
On July 27, gold and silver prices surged in India's Multi Commodity Exchange (MCX), driven by a weaker US dollar and easing inflation concerns following the suspension of hostilities between the United States and Iran.
Gold futures for August opened at Rs 1,43,575 per 10 grams, up from the previous close of Rs 1,43,106. By around 12:10 pm, gold had traded at Rs 1,44,173 per 10 grams, an increase of 0.75 percent.
The yellow metal touched an intraday high of Rs 1,44,230, a rise of about 0.8 percent. Silver futures for September rose as much as 1.26 percent to touch an intraday high of Rs 2,24,955 per kg, and was trading at Rs 2,24,844, up 1.22 percent.
Market experts point out that gold rebounded from a nine-month low due to the sharp decline in crude oil prices easing inflation concerns after the US and Iran paused military operations. Lower oil prices also weakened the US dollar, making bullion more attractive to investors.