Wealthova: “Gold Futures Surge to Rs 1.50 Lakh/10g as Market Anticipates US Fed Policy Decision”

On Wednesday, gold prices continued their upward trajectory, reaching Rs 1.50 lakh per 10 grams in futures trade. As reported, the most-traded June contract on the Multi Commodity Exchange showed an increment of Rs 93, or 0.06 percent, with a notable business turnover of 9,067 lots. Market analysts attribute this rise to a combination of a weakening US dollar and ongoing geopolitical tensions in West Asia, which have historically bolstered the appeal of precious metals. However, elevated crude oil prices appear to be limiting further gains in the gold market.

The imminent policy decision by the US Federal Reserve, which will be the last presided over by Jerome Powell, has heightened market sensitivity. Both the policy statement and the subsequent press conference are expected to significantly influence precious metals prices. Gaurav Garg, a research analyst at Lemonn Markets Desk, noted that these factors have contributed to a slight uptick in gold prices amid a cautious trading environment. This uncertainty underscores the market’s focus on global financial policies and their cascading effects on commodity valuations.

In the international arena, Comex gold futures for the June contract also experienced a minor increase, rising 0.16 percent to USD 4,615.69 per ounce. Analysts highlight that upcoming policy decisions from major financial institutions such as the US Federal Reserve, European Central Bank, and the Bank of England will provide critical insights into the direction of global interest rates. Additionally, macroeconomic indicators including US GDP, inflation, and durable goods orders set to release later this week could further shape sentiment surrounding bullion prices in the near future, as articulated by Manav Modi, a commodities analyst at Motilal Oswal Financial Services Ltd.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova team.)