MUMBAI: Breaking a multi-session losing streak, gold prices rebounded sharply across domestic and international markets today. The recovery was driven by a pull-back in the U.S. dollar, easing Treasury yields, and renewed safe-haven buying spurred by global macroeconomic uncertainties.
On the Multi Commodity Exchange (MCX), benchmark gold futures rallied back above the ₹1,53,000 per 10-gram mark. In physical retail bullion markets, 24-carat gold jumped by over ₹3,000 to hover around ₹1,55,350 per 10 grams, while 22-carat gold surged to ₹1,42,400 per 10 grams. The sharp turn higher snapped a five-day downward spiral that had seen bullion shed significant gains from its late-August peaks.
Market analysts attribute the sudden reversal in gold’s trajectory to a confluence of global financial triggers and labor market data.
The U.S. Dollar Index (DXY) surrendered recent gains following lower-than-expected ADP private employment numbers, which showed a cooling labor market. A softer dollar makes greenback-denominated bullion cheaper for foreign currency holders.
The economic slowdown indicators reinforced investor expectations that the Federal Reserve may pursue a more dovish stance on interest rates, lowering the opportunity cost of holding non-yielding precious metals.
Ongoing geopolitical tensions between the U.S. and Iran, combined with broader market volatility, continue to underpin demand for gold as a hedge against systemic risk.
The rebound comes at a crucial junction for domestic physical markets as Indian jewellers prepare for the upcoming festival and wedding buying season. Local jewelers in major hubs like Mumbai, Delhi, and Chennai reported a modest uptick in footfalls following the price correction earlier in the week, though retail buyers remain cautious given the high overall price band.
According to commodities experts, short-term market momentum will hinge on upcoming economic indicators, including the U.S. non-farm payrolls report. While technical resistance remains near record high levels, analysts expect gold to maintain a strong floor above current support zones as central banks continue to accumulate reserves globally.
