Gold Soars on Weaker Dollar Ahead of US Inflation Data and Fed Speech
Gold prices rose Rs 8,200/10g in four days on the MCX on Monday, while silver fell Rs 1,800/kg. This move came as investors turned their attention to key US inflation data and a speech by Federal Reserve Chair Kevin Warsh later this week.
The dollar remained near multi-month lows due to the US Treasury's plan to buy back more long-term bonds. A weaker US dollar makes gold cheaper for buyers holding other currencies, leading to an increase in gold prices.
Gold futures for October 2026 delivery rose by Rs 1,000 to Rs 1,63,434 per 10 grams on the MCX, while silver futures for September 2026 delivery were down Rs 1,782 to Rs 2,44,815 per kg. Spot gold rose 0.5% to $4,627.42 per ounce after touching its highest level since May 15 earlier in the session.
Manoj Kumar Jain of Prithvi Finmart expects gold and silver prices to remain volatile this week amid fluctuations in crude oil prices and the dollar index. He recommends buying gold around Rs 1,60,600-1,59,500 with a stop loss below Rs 1,57,700 and a target of Rs 1,63,600-1,64,850.