Gold Surges on US Treasury Move
Gold prices surged by nearly 2% in one day after a US Treasury announcement about bond buybacks. The move could provide liquidity support to the long end of the bond market, pushing down the 30-year US Treasury yield and boosting investor interest in gold.
The yellow metal gained ₹3,212 per 10 grams, climbing to ₹1,57,080 from ₹1,53,868 in the previous session. Spot gold jumped 4% to $4,488 an ounce globally, while US gold futures settled 3% higher at $4,545.
India Bullion and Jewellers Association President Prithviraj Kothari said that if pressure on the dollar persists, gold could test the $4,550-$4,600 range. However, he also cautioned that rising prices can temper physical demand during festivals.
All India Gem and Jewellery Domestic Council Chairman Rajesh Rokde offered a more optimistic view, saying higher prices often encourage consumers to exchange old jewellery for newer designs and opt for lighter-weight ornaments.