Why is MCX Gold Rising Amid Global Market Support?
Click to start listening
Synopsis
Gold prices on the MCX have seen a notable rise, driven by global market gains and a weakening rupee. As the Indian currency hits an all-time low, investors are keenly watching market data that could influence future price movements. This article delves into the factors behind this surge and what it means for investors.
Key Takeaways
- MCX gold prices surged due to global market support.
- Indian rupee hit a historic low against the US dollar.
- Key economic data is highly anticipated this week.
- Central banks are increasing their gold reserves.
- Investors should monitor price support levels closely.
Mumbai, Dec 3 (NationPress) On Wednesday, gold prices on the Multi Commodity Exchange (MCX) experienced a significant surge, bolstered by advancements in the global bullion market and a steep decline in the Indian rupee, which has reached a historic low against the US dollar.
MCX gold commenced at 0.6 percent higher, priced at Rs 1,30,550 per 10 grams, as compared to its prior close of Rs 1,29,759.
Analysts noted, “A firm and sustained close above Rs 1,32,300 could drive prices towards Rs 1,34,400– Rs 1,35,500. Immediate support is found around Rs 1,30,000, while a more robust base is seen near Rs 1,28,400.
Silver also opened strongly, climbing 1.21 percent to Rs 1,83,799 per kg from Tuesday’s close of Rs 1,81,601.
During the initial trading session, gold prices peaked at Rs 1,30,641, an increase of Rs 882 or 0.68 percent, while silver rose to Rs 1,84,153 per kg, gaining Rs 2,552 or 1.41 percent.
In the international arena, gold remained stable after a 1 percent decline in the previous session. Investors are eagerly anticipating vital US economic data that could signal whether the US Federal Reserve will reduce interest rates later this week.
Spot gold was around $4,207.43 per ounce, whereas US gold futures for December increased by 0.5 percent to $4,239.50 per ounce.
Silver saw a slight dip of 0.2 percent to $58.32 per ounce, while platinum declined 0.4 percent to $1,631.10.
The increase in domestic gold prices was notably influenced by the weakening of the Indian rupee, which hit an unprecedented low of 90.14 against the US dollar, making gold costlier for Indian consumers.
To date, the rupee has depreciated more than 5 percent in value for 2025.
Investors are closely monitoring key economic indicators due this week, including the November ADP employment data and the postponed September Personal Consumption Expenditures (PCE) Index, the preferred inflation metric of the US Fed.
In the meantime, central banks have been actively increasing their gold reserves. According to the World Gold Council, they acquired 53 tonnes of gold in October, representing a 36 percent rise from the previous month and the largest monthly acquisition thus far in 2025.
Point of View
This significant rise in gold prices reflects broader economic dynamics influenced by global market trends and currency fluctuations. As the Indian rupee continues to weaken, it is crucial for investors to stay informed and adapt their strategies accordingly. At NationPress, we remain committed to providing timely and relevant financial insights to guide our audience.
NationPress
03/12/2025
Frequently Asked Questions
What factors are driving gold prices up?
The rise in gold prices is attributed to gains in the global bullion market and a decline in the Indian rupee, which has reached a record low against the US dollar.
How has the Indian rupee affected gold prices?
The weakening of the Indian rupee makes gold more expensive for Indian buyers, contributing to the increase in domestic gold prices.
What is the current price of gold on MCX?
As of the latest trading session, gold on the MCX opened at Rs 1,30,550 per 10 grams.
What levels should investors watch for gold prices?
Investors should monitor if gold prices can sustain above Rs 1,32,300, which could lead to further increases towards Rs 1,34,400 and Rs 1,35,500.
What other precious metals are being affected?
Silver has also seen a rise, and investors are watching international prices for gold, silver, and platinum closely.
