Gold, silver futures rally on weak dollar

Gold and silver futures rose sharply on Wednesday as weaker crude oil prices and a softer US dollar boosted investor sentiment amid growing hopes of a peace agreement between the US and Iran. 

  Bullion futures contracts on the MCX mirrored strong gains on the COMEX, while easing inflation concerns improved expectations around the US Federal Reserve’s monetary policy outlook. 

 At 1805 IST, the most active June gold futures contract on the MCX rose 1.5% to ₹1,52,054 per 10 grams.  On the COMEX, the same-month futures contract gained 3% to $4,710.3 per ounce. 

   Silver futures prices also rallied strongly, with the July contract on the MCX surging 3% to ₹2,56,456 per kg, while the corresponding COMEX futures contract jumped 5% to $77.28 per ounce. 

Mkt sentiment improved after reports suggested that the White House was nearing a memorandum of understanding with Iran to end the ongoing conflict. Gold, being a non-yielding asset, generally benefits in a lower interest-rate environment. 

   Investors are now awaiting key US economic data, including non-farm payrolls and unemployment figures due on Friday, for further direction on the Federal Reserve’s policy trajectory. 

— Informist