Gold Rates Surge on MCX Amid Dollar Weakness and Value Buying

Gold Price Update: March 27, 2024

MCX Gold June Futures rose by 1% to ₹1,43,829 per 10 grams, while MCX Silver May Contracts increased by 2% to ₹2,23,978 per kg in morning deals.

The dollar index declined by 0.10%, making gold slightly cheaper in overseas currencies and influencing its demand. However, elevated crude oil prices due to persisting uncertainty over the West Asian conflict remain a key challenge for the yellow metal.

Domestic spot gold prices have declined nearly 9% in March, as per MCX data. The recent decline in gold prices is attributed to the surge in the dollar index and crude oil prices.

Read also: Gold and Silver Prices Decline Amid Strengthening Dollar and Inflation Concerns

Market Outlook:

• Gold and silver may see a mild near-term recovery, but breaking recent highs looks difficult.
• A firm US dollar is likely to cap strong upside, keeping price movements relatively restrained for now.
• The lack of clarity on the reopening of the Strait of Hormuz keeps underlying risks intact, with crude price risk not off the table.

Range Outlook:

• COMEX Gold Rate: in a broader $4,250 to $4,500 per ounce range.
• MCX Gold Rate: in the ₹1,30,000 to ₹1,55,000 per 10 gm range.

Read also: Gold and Silver Prices in India: A Review of Current Rates Across Major Cities