Gold Prices Surge in India Ahead of US Inflation Data
Gold and silver prices surged in India's domestic market on Tuesday as investors awaited US inflation data for signals on the Federal Reserve's interest-rate path. The MCX saw a sharp increase, with gold futures for October 2026 delivery rising by Rs 2,338 to Rs 1,55,437 per 10 grams, and silver futures for September 2026 delivery up by Rs 5,132 at Rs 2,41,999 per kg.
The rally comes despite Middle East war worries, with Hormuz reopening hopes remaining dim. The last three days have seen the white metal gain over Rs 16,000 or more than 7%, while gold has risen by Rs 6,600 or more than 4%. Markets are now looking ahead to the US consumer price report due on Wednesday and producer price data on Thursday.
Fawad Razaqzada, a market analyst at Forex.com, said that if the data continues to point towards a cooling economy without meaningful inflation resurgence, markets could reduce expectations for tighter policy. This would leave the dollar vulnerable and provide another supportive backdrop for gold, which doesn't pay interest.