India Gold Prices Surge on Healthy Demand, Positive Global Cues
Gold and silver prices rose in India's domestic futures market on Tuesday morning due to healthy spot demand and positive global cues. MCX gold October series increased by 0.42% to ₹1,53,461 per 10 grams, while MCX silver December contracts were up 0.67% at ₹2,40,615 per kg.
International gold prices also saw gains, with US gold futures for December delivery rising 0.40% to $4,485.84 per troy ounce. The decline in the US dollar and bond yields contributed to this increase.
Investors are awaiting the US Federal Reserve's policy meeting on September 15-16, where there is a 60% chance of an interest rate hike. Markets will also be watching the release of US producer price index data on Thursday and consumer price index data on Friday for further cues on the Fed's next move.
According to Ravi Singh, Chief Research Officer at Master Capital Services, the key trigger now is the upcoming US inflation data. He noted that hotter-than-expected readings could strengthen rate-hike expectations and add pressure on gold.