Indian Gold Prices Surge ₹1,272 on Expectations of US Fed Rate Cuts
Gold and silver prices rose in India on August 7 due to fresh buying and a firm global trend, driven by expectations of US Federal Reserve rate cuts. Gold futures for October delivery on the Multi Commodity Exchange (MCX) surged ₹1,272, or 0.85%, to ₹1.50 lakh per 10 grams. Silver also moved higher, with MCX silver futures for September delivery gaining ₹5,496, or 2.43%, to ₹2.31 lakh per kg.
The rally in precious metals has been supported by a combination of lower US Treasury yields and expectations of easing inflation pressures, said Karthick Jonagadla, smallcase manager and MD & CEO of Quantace Research. Gold benefits when bond yields fall as the opportunity cost of holding a non-yielding asset like gold declines.
Justin Khoo, Senior Market Analyst - APAC at VT Markets, attributed the recent rally to falling oil prices, weaker US labour market data, lower Treasury yields, and changes in geopolitical risk. Gold's recent climb above $4,300 an ounce is an important test for the metal.