Gold Shines Amid Weak Dollar and Ceasefire Hopes

Gold prices soared, reaching Rs 1.44 lakh per 10 grams in futures trade, supported by easing geopolitical tensions and a weak US dollar. Analysts cite safe-haven demand and central bank buying, especially from China and Kazakhstan, as significant contributors to the rally.

On Wednesday, gold prices surged by Rs 5,091 to touch Rs 1.44 lakh per 10 grams in futures trading, reflecting strong global trends and a weak US dollar. The Multi Commodity Exchange reported this rise for the April contract, marking a 3.66 percent increase.

Analysts attributed this rally to improving sentiment in the global commodities market. Easing geopolitical tensions, particularly the US-Iran conflict, and expectations of potential interest rate cuts amid inflation concerns bolstered the bullion market, according to Gaurav Garg, a Research Analyst at Lemonn Markets Desk.

Internationally, April gold futures ascended 3.59 percent, underscoring the precious metal's resilience amid fluctuating economic signals. The weaker dollar has made gold more affordable for non-dollar holders, further driving demand, commented Jigar Trivedi, a Senior Research Analyst at IndusInd Securities.

(With inputs from agencies.)