MCX Shares Surge Amid US Treasury Liquidity Support

MCX shares surged by over 4% on Thursday as gold and silver futures rose following a surprise liquidity support announcement by the US Treasury. The MCX stock has gained around 10% in a month, 41% so far this year, and more than 88% over the past year.

Over the longer term, MCX shares have delivered stellar returns of around 900% in three years and 940% in five years. Thursday's sharp surge came as metal futures climbed on the domestic commodities exchange.

The rally was driven by US Treasury yields falling following the announcement that it would double the size of its liquidity-support buyback operations for longer-dated notes and bonds. Meanwhile, the US dollar remained muted, making dollar-priced metals cheaper for buyers holding other currencies.

Global brokerage UBS recently upgraded its rating on MCX shares to 'Buy' from 'Neutral' and raised its target price to Rs 3,800 from Rs 3,600, citing key regulatory developments as important medium-term growth catalysts. Sebi's recent consultation paper proposing Foreign Portfolio Investment (FPI) participation in physically settled non-agricultural commodity derivatives is expected to structurally deepen the commodity market.