Gold Market
Daily movements in the gold market and what is driving them.
Gold rose 5% to nearly $4,603, its third straight weekly gain. A weaker US dollar and Treasury buybacks supported the rally, though the World Gold Council expects near-term prices to stay rangebound.
Gold prices have surged sharply in August, supported by a weaker US dollar, expectations of monetary easing, geopolitical tensions, and sustained central-bank purchases. Strong Chinese demand and India’s upcoming festive and wedding season add further support.
Tata Mutual Fund has removed limits on large investments in its Gold ETF and Gold ETF Fund of Funds after market conditions normalised, joining HDFC and Invesco in easing curbs imposed earlier this year.
Goldman Sachs now sees gold potentially exceeding its $4,900 year-end forecast, driven by rising call-option activity, Western investor interest and sustained central bank buying.
Gold prices climbed to a three-month high on Friday, extending gains for a third consecutive week as a softer US dollar and positive technical signals attracted investors.
Seven stocks from the BSE Consumer Discretionary Index hit fresh 52-week highs on Friday, recording monthly gains of 8% to 37% even as the broader Sensex remained flat.
Spot gold rose 0.5% to $4,540.18 on Friday and has gained 3.6% this week, helped by a softer dollar and Treasury buyback plans.
Shares of gold loan lenders Muthoot Finance, Manappuram Finance, and IIFL Finance rose up to 7% in two sessions after gold prices crossed Rs 1.6 lakh per 10 grams on the MCX.
Gold futures on the MCX climbed ₹1,432 to ₹1.60 lakh per 10 grams, driven by fresh speculative positions and firm physical demand. The October contract traded at ₹1,60,857.