24-Karat Comeback: Gold Futures Reignite as Demand Heats Up

Image Source: CNBC Tv18

Market Pulse Gold futures gained on July 1 as robust spot demand and fresh speculative interest pushed up prices by more than 1,000 rupees per 10 grams. August Multi Commodity Exchange contracts rose to 97,140 per 10 grams, a one-session 1.11% advance.

Momentum Drivers:

Traders constructed new positions amidst strong retail and institutional demand

Implied global gold futures rose 1.15% to 3,345.70 dollars an ounce in New York

It was aided by safe-haven demand due to geopolitical tensions and inflationary fears

Analysts at Investor Insight attribute the jump to a combination of China's holiday-season restocking, central bank gold buying, and a declining rupee, that increased the cost of imports and gold held domestically.

Perspective With global uncertainty and central banks holding rates firm, gold can keep on shining in the short term—thanks to spot demand staying strong.

Sources: Rediff Money, Deccan Herald, Times of India, Reuters, MCX India