Gold Prices Soar 12% This Month Amid Dollar Debasement Fears

Gold prices have surged over 12% this month, with investors buying into the precious metal amid concerns about dollar debasement and monetary policy uncertainty.

The US Treasury's unexpected intervention in the bond market last week boosted gold's rally, with prices climbing back above $4,600 an ounce on Thursday.

MCX gold October futures rose 0.28% to Rs.1,60,108 per 10 grams, while spot gold gained as much as 1.1%, recovering most of the losses it had incurred in the previous session.

Kaynat Chainwala from Kotak Securities believes that investors are increasing their exposure to hard assets amid concerns over fiscal policy and monetary-policy uncertainty.

However, both Chainwala and Hareesh V from Geojit Investments Limited caution that a sustained move towards $5,500 an ounce in the immediate term is not yet their base case.