Gold Prices Surge as Weaker Dollar Fuels Currency Debasement Concerns

On August 27, gold prices on MCX rose by 0.33% to Rs. 1,60,191 per 10 grams due to a weaker US dollar amid concerns of currency debasement.

The increase in gold price was supported by the decline of the US dollar, with spot gold up 0.8% at USD 4,630.09 per ounce and US gold futures rose 0.7% to USD 4,685.50.

Meanwhile, Brent crude futures fell 0.41% to USD 87.45 per barrel and US West Texas Intermediate (WTI) edged lower by 0.49% to USD 81.83 per barrel.

Kelvin Wong, a senior market analyst at OANDA, said, "The dollar-debasement narrative, coupled with concerns about the US budget deficit, remains supportive of gold in the medium term."