Gold Prices Surge Amidst Weakening US Dollar and Rising Domestic Demand

The gold market experienced a significant uptick in prices on May 10, propelled by a combination of factors including a declining US dollar and heightened domestic demand

Post By : IJ News Service On 13 May 2024 3:02 PM

Gold prices surged significantly yesterday, May 10, driven by a combination of declining US dollar values and heightened domestic demand. On the auspicious occasion of Akshaya Tritiya, the gold futures contract on the Multi Commodity Exchange (MCX) for June 2024 delivery opened at a higher rate of Rs71,730 per 10 grams and peaked at an intraday high of Rs72,888 per 10 grams, marking an impressive intraday increase of approximately Rs1,200 per 10 grams.

Internationally, the COMEX gold price climbed by $39 per troy ounce to reach the $2,379 mark, while the spot gold price hovered around the $2,300 per ounce level. Analysts in the commodity market attribute today's upward trajectory in gold prices to the depreciation of the US dollar.

Anuj Gupta, Head of Commodity & Currency, explained the rationale behind the surge in gold rates, stating, "Gold prices are on the rise today as the US dollar is facing downward pressure following the decision by the Bank of England to maintain interest rates at current levels. The unexpected decision has prompted profit-taking in the currency market, subsequently driving up gold prices."

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