Gold Soars on US Treasury Yields Plunge and Dollar Weakness
Gold prices surged on the MCX Thursday as US Treasury yields plummeted and the dollar remained subdued following a surprise liquidity support announcement by the US Treasury.
Gold futures for October delivery rose Rs 447 per 10 grams to Rs 1,58,443 Thursday morning. December contracts jumped above Rs 1.6 lakh per 10 grams, while February contracts traded above Rs 1.62 lakh per 10 grams.
In the international market, gold hovered near its highest level in more than two months after the US Treasury's announcement pushed yields and the dollar lower. Spot gold jumped to $4,526 per ounce, the highest level since June 2.
Christopher Wood, Jefferies' Global Head of Equity Strategy, believes the recent pullback in gold prices may have created an opportunity for investors to gradually accumulate the yellow metal. He suggests that the precious metal could be at the beginning of a long-term bull run.