Gold's rally continues. The MCX gold index climbed 0.66% to ₹1.53 lakh per 10 grams, and silver surged 1.20% to ₹2.41 lakh per kg—its first weekly gain in over a month.
Fed‑driven Treasury yields are in retreat, and the dollar is softer, which has lifted precious metals worldwide. Vedika Narvekar, Research Analyst at Anand Rathi, said the cooling yields after the June rate hike have “eased some inflation concerns,” and that the dip in oil prices further supports the metal’s longer‑term case.
The rupee’s 0.95‑per‑dollar level matters because India imports most bullion. Gaurav Garg, Head of Research at Lemonn, noted that a weaker rupee can cushion domestic prices against international falls, but a stronger rupee could cap gains. Vikram Subburaj, CEO of Giottus.com, added that currency swings often cause domestic prices to diverge from global benchmarks.
Physical demand may pick up as the festive season gathers steam. Darshan Desai, CEO of Aspect Bullion & Refinery, said the recent correction has drawn buyers back, but consumers remain selective given the high price. He expects a gradual lift in demand for coins, bars and lighter‑weight jewellery as weddings and festivals approach.
Looking ahead, analysts warn that Fed guidance for at least one more hike this year and ongoing U.S. dollar volatility are still headwinds. Gaurav Garg suggested that traders keep the rupee’s stability in mind and consider staggered buying to manage price swings. The next MCX session will be watched for any shifts in Treasury yields or dollar strength that could reset the bullion trajectory.