Gold Prices Surge Amid Market Volatility

Gold prices climbed by Rs 1,044 to Rs 1,53,880 per 10 grams due to increased positions by speculators following strong spot demand. The rise reflects global trends, potentially influenced by a stronger US dollar, Federal Reserve rate strategies, and geopolitical factors, which continue to support the metal.

Gold prices increased significantly on Friday, with futures surging by Rs 1,044 to Rs 1,53,880 per 10 grams as traders intensified their positions amid solid spot demand. On the Multi Commodity Exchange, gold contracts for April delivery showed a 0.68% increase, reflecting a rising trend in gold futures worldwide.

In the global arena, gold futures ascended by 0.81% to USD 4,962 per ounce in New York. Analyst Jigar Trivedi from IndusInd Securities highlighted the recovery after a sharp plunge in the previous session that saw investors shed precious metals amid a broad market sell-off. Gaurav Garg of Lemonn Markets Desk emphasized the year-on-year strength of global bullion prices, pointing to market drivers such as a robust US dollar and evolving Federal Reserve policy expectations.

Investors remain particularly attentive to forthcoming US inflation data, poised to influence Federal Reserve policy decisions. January's unexpectedly strong jobs data has adjusted market expectations, suggesting a potential rate cut might occur in July. Meanwhile, ongoing concerns about currency stability, central bank actions, and geopolitical issues continue to bolster gold's market position, according to Trivedi.

(With inputs from agencies.)