Gold Surges as Dollar Weakens Ahead of Key US Inflation Data
Gold prices continued their upward trend on the Multi Commodity Exchange (MCX) for the fourth consecutive session, reaching Rs 1,63,434 per 10 grams. In contrast, silver prices snapped a three-day gaining streak and dropped by Rs 1,782 to Rs 2,44,815 per kilogram.
The rise in gold prices can be attributed to a weaker US dollar, which makes the precious metal cheaper for buyers holding other currencies. The dollar remained near multi-month lows as markets reacted to the US Treasury's plan to buy back more long-term bonds.
Investors are closely watching key US inflation data and a speech by Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium this week, which may provide fresh signals on interest rates. Manoj Kumar Jain of Prithvi Finmart expects gold prices to remain volatile amid fluctuations in crude oil prices and the dollar index.