Gold Price Jumps as US Dollar Weakens, Central Banks Boost Bullion
The gold price has gained ₹324 (0.20%) to reach ₹1,59,320 per 10 grams on the Multi Commodity Exchange (MCX). The yellow metal's intraday high was ₹1,59,741.
Ajay Kedia, Director of Kedia Advisory, attributes the rise in gold and silver prices to renewed buying interest. Lower crude oil prices have cooled inflation concerns and reduced worries about further US Federal Reserve rate hikes.
The US dollar has slipped below 99, making precious metals more appealing. Continued gold purchases by central banks and rising inflows into gold exchange-traded funds (ETFs) are supporting bullion prices.
Monarch PMS expects gold to remain in the $4,300-$4,700 per ounce range and silver at $70-$85 per ounce by 2026's end under its base-case scenario. In a bullish scenario, with a 25% probability, gold could reach $5,000-$5,600 per ounce, while silver could climb to $95-$120 per ounce.
The market is facing its sixth consecutive annual deficit, and mine supply has remained flat for nearly a decade. The gold-silver ratio has risen to around 69x compared to January's peak of 46x.