Gold price in India surged to more than one-week high on Monday, following the global gold rates. On the Multi-Commodity Exchange of India (MCX), gold futures surged to 0.29 per cent to Rs 50,977 for 10 grams at 1015 hours on May 23. Silver also jumped on Monday. The precious metal future surged 0.40 per cent to Rs 61,653 for a kilogram on May 23.
In the international market, spot gold jumped 0.3 per cent to $1,850.39 per ounce, by 0039 GMT, highest since May 12. US gold futures also gained 0.3 per cent to $1,847.90. The US dollar on Monday witnessed its first weekly loss in nearly two months. A weaker dollar means the bullion will be more attractive for overseas
buyers. Meanwhile, benchmark US 10-year Treasury yields firmed, limiting demand for zero-yield gold.
On the domestic front, MCX Gold started close to Rs 48,000 for 10 grams before rising as high as Rs 55,500 and then retreating back to trade near 50,000-level. The ongoing Ukraine-Russia war fizzled the shine of the precious metal after a good start this year. The rising inflation across the world, however, will increase the the appeal of safe-haven metal, believed analysts.
“Overall, there are increasing challenges for global economy in form of geopolitical risks, inflation concerns, virus concerns and this may keep investors looking for safe havens like gold,” Madhavi Mehta, analyst, Kotak Securities said. “Fed’s monetary tightening stance is negative for gold however it is possible that the US central bank may take one step at a time to minimise the negative
impact of higher borrowing costs on economic activity,” it added.