Will Gold Continue to Shine on MCX with a Potential India–US Trade Deal?
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Synopsis
Gold prices are on the rise on the MCX, fueled by optimism surrounding a potential trade deal between India and the United States. With the Indian rupee also strengthening, investors are keen to see how these developments will influence the gold market and global economic conditions.
Key Takeaways
- MCX Gold prices up by 0.89%.
- MCX Silver contracts rose by 0.93%.
- Gold prices expected to be between Rs 1,21,500 and Rs 1,23,000.
- US inflation data could impact interest rates.
- Rupee opened at 87.83, showing strength post-Diwali.
Mumbai, Oct 23 (NationPress) The price of gold experienced an uptick on the Multi Commodity Exchange (MCX) this Thursday morning, driven by expectations that India and the United States are nearing a trade agreement. This hopeful outlook has significantly boosted investor interest in precious metals.
During the early trading session, MCX Gold December futures saw an increase of 0.89 percent, reaching Rs 1,22,938 per 10 grams.
In a similar fashion, MCX Silver December contracts rose 0.93 percent, trading at Rs 1,46,915 per kilogram.
Market analysts suggest that MCX gold prices for the December expiry are likely to fluctuate between Rs 1,21,500 and Rs 1,23,000 per 10 grams.
Contrastingly, in the global market, gold prices have dipped slightly due to a stronger US dollar, as investors await crucial inflation data from the United States later this week.
This data is anticipated to have a significant impact on the Federal Reserve's forthcoming interest rate decisions.
As of 3:10 a.m. GMT, spot gold fell by 0.2 percent to $4,084.29 per ounce, while U.S. gold futures for December delivery rose 0.9 percent, reaching $4,100.90 per ounce.
The US dollar index gained 0.2 percent against major currencies, making gold pricier for international buyers.
“After a notable surge, gold prices have entered a new volatile phase,” analysts commented.
“On course for its largest annual increase since 1979, gold's 54 percent rise year-to-date has enabled it to surpass critical psychological barriers of $3,000 per troy ounce in March and $4,000 in October,” they further noted.
Meanwhile, the Indian rupee opened on a stronger note following the Diwali festivities, buoyed by optimism regarding the trade talks with the US.
The rupee commenced trading at 87.83 against the dollar, appreciating by 10 paise from its previous closing of 87.93.
Currency and bond markets were closed on October 21 and 22 due to the Diwali holidays.
Point of View
The rise in gold prices amidst the potential trade agreement between India and the United States reflects the dynamic interplay of global economic factors. The optimism surrounding the trade talks, coupled with the strengthened rupee, highlights the importance of international relations in shaping market trends. As always, we at NationPress remain committed to bringing you the most accurate and insightful financial news.
NationPress
23/10/2025
Frequently Asked Questions
Why did gold prices rise on the MCX?
Gold prices rose due to optimism surrounding a potential trade deal between India and the United States, which has boosted investor sentiment.
What are the expected price ranges for MCX gold?
Analysts expect MCX gold prices for December expiry to fluctuate between Rs 1,21,500 and Rs 1,23,000 per 10 grams.
How has the US dollar affected gold prices?
A stronger US dollar has led to a slight decline in global gold prices, making it more expensive for foreign buyers.
What impact will the upcoming US inflation data have?
The upcoming US inflation data is likely to influence the Federal Reserve's decisions on interest rates, which can impact gold prices.
How did the Indian rupee perform after Diwali?
The Indian rupee opened stronger at 87.83 against the dollar, supported by positive sentiments regarding trade talks with the US.
