Gold prices increase on MCX, following global surge

The price of gold surged on MCX on Wednesday, with gold for June 5 delivery trading 0.44 per cent higher at Rs 71,652 per 10 grams at around 11:30 a.m. The domestic futures market reflected the rally in the global market, where the yellow metal reached a record high.

Gold and silver prices saw an increase on the Multi Commodity Exchange (MCX) as gold futures set for June 5, 2024, stood at Rs 71,456 per 10 grams after a jump of Rs 116 or 0.16 per cent, with the previous close recorded at Rs 71,340.

At the global level, gold prices were near record highs of $2,351.94 per ounce on Wednesday morning, driven by central bank purchases and escalating geopolitical risks. The US Fed rate cut also contributed to the surge in demand for gold as a safe-haven asset amid inflation concerns.

In the Indian market, gold prices remained strong on Wednesday with slight variations across cities. Delhi priced 24-carat gold at around Rs 71,890 per 10 grams, while Mumbai was at Rs 71,790. Chennai topped the list with Rs 72,150 for 24-carat gold, followed by Kolkata and Bengaluru at around Rs 71,280.

The demand for gold in India is fueled by traditional occasions like marriages, where gold jewelry is a popular gift. However, the soaring prices are dampening the demand from middle-class families as the precious metal becomes less affordable.

The increase in gold prices this year has reached as high as 14 per cent, driven by global factors and domestic demands. Despite the challenges faced by the middle-class, the trend of rising gold prices is expected to continue in the near future.