Gold prices extended gains for the second consecutive session on Wednesday, with futures rising by Rs 2,165 to Rs 1.46 lakh per 10 grams on the Multi Commodity Exchange (MCX), tracking a sharp rally in global markets amid renewed safe-haven demand and a weaker US dollar.
The October gold contract climbed Rs 2,165, or 1.5 per cent, to Rs 1,46,464 per 10 grams. Silver prices also remained firm, supported by improving global sentiment and sustained investor interest in precious metals.
According to Gaurav Garg, Head of Research at Lemonn Markets Desk, gold continued its upward momentum as investors increased safe-haven buying amid renewed geopolitical uncertainty and a softer US dollar.
The rally came on the same day the Reserve Bank of India (RBI) kept the benchmark repo rate unchanged at 5.25 per cent for the fourth consecutive Monetary Policy Committee (MPC) meeting, with policymakers seeking greater clarity on inflation risks stemming from higher energy prices.
Ajitabh Bharti, Co-founder and Executive Director at CapitalXB, said the RBI's decision to keep rates on hold was balanced, as the central bank continues to support economic growth while closely monitoring inflation amid the ongoing US-Iran conflict and global uncertainties.
In international markets, Comex gold futures for the December contract surged USD 73.90, or nearly 2 per cent, to USD 4,226.50 per ounce in New York.
Pinky Yadav, Commodity Fundamental Analyst at Choice Broking, said bullion prices rallied as optimism over a potential agreement to reopen the Strait of Hormuz eased concerns over disruptions in global oil supplies. Softer crude prices helped reduce near-term inflation worries, further supporting demand for precious metals.
Analysts said investors will now closely watch upcoming US macroeconomic data and comments from major central banks for fresh cues on the direction of gold and silver prices.
