Gold Glitters Amidst Dollar Drop: Surges Past $1,990

Published on Nov 02, 2023 14:15

Gold futures rose above $1,990 an ounce, reversing a three-day decline, primarily due to a significant weakening of the US dollar and falling Treasury yields. The US Federal Reserve`s decision to maintain interest rates, as widely expected, left room for potential monetary tightening due to persistent concerns about high inflation. Geopolitical tensions in the Middle East, such as the Israeli strike on a Hamas commander in Gaza`s Jabalia refugee camp, continued to support gold prices. Additionally, global economic uncertainties played a role, with both the US and China experiencing a contraction in manufacturing activity in October. MCX gold futures for December delivery are trading up by Rs 149 at Rs 60934 per 10 grams. Gold demand in India surges towards year-end due to the cultural significance of festivals like Diwali and Dussehra, where purchasing gold is considered auspicious, and the peak wedding season, making it a key period for gold sales and gifts.