Gold Prices Soar ₹6,400 in Three Days Amid US Dollar Weakness

Gold prices have surged on the MCX exchange for the third consecutive session, rising by ₹6,400 in just three days. The October delivery gold futures rose by ₹757 to ₹1,49,250 per 10gm, while silver futures for September delivery gained by ₹228 at ₹2,27,812/kg.

The increase in gold prices is attributed to a weaker US dollar, lower Treasury yields, and easing oil prices amid hopes of reopening the Strait of Hormuz. This development has created a favorable environment for gold, which typically thrives in low-interest-rate scenarios due to its lack of yield.

Manoj Kumar Jain of Prithvi Finmart predicts that gold and silver prices will remain volatile this week due to fluctuations in crude oil prices, dollar index movements, and ongoing geopolitical tensions. He advises buying gold above ₹1,48,800 with a stop loss below ₹1,47,400 for targets of ₹1,50,500-₹1,51,100.