Gold prices surged by ₹3,000 per 10 grams to an intraday high of ₹1,45,575 on July 1, recovering after an 8% decline in June, according to livemint.com. This rebound followed softer US jobs data and comments from former Fed official Kevin Warsh that eased expectations of an imminent US interest rate hike.
The gains in gold prices were driven by a combination of weaker US employment figures and remarks that reduced the likelihood of aggressive Federal Reserve tightening. The weaker dollar also contributed to the rally, making gold more attractive to investors. Markets currently price a 65% chance of a rate hike in September, reflecting cautious optimism about the US economic outlook, as detailed by livemint.com.
Gold's recovery comes amid a volatile quarter where prices had fallen sharply due to concerns over rising interest rates. The easing of rate hike fears contrasts with the previous sentiment that had pressured gold prices downwards. This shift is significant for the Indian market, where gold remains a key investment and hedge against inflation, especially as global monetary policies influence domestic commodity trends, per livemint.com.
The near-month gold futures contract on the Multi Commodity Exchange (MCX) will be closely watched in the coming sessions to assess whether the price can sustain above ₹1,45,000, a level not seen since early June, according to livemint.com.