Gold prices have shown a noticeable rise, increasing by Rs 462 to Rs 79,695 per 10 grams in futures trading on Wednesday. This surge is mainly due to higher demand in the physical gold market, prompting speculators to build new positions. On the Multi Commodity Exchange (MCX), December gold contracts rose by 0.58%, with significant trading activity.
December Gold Futures on MCX
The December gold futures, traded on the Multi Commodity Exchange, saw an increase of Rs 462 or 0.58% from the previous price level. This rise was observed in a trading volume of 14,719 lots. According to analysts, this increase is due to fresh positions being set up by market participants in response to the strong demand in the gold market.
Global Gold Market Trends
Globally, gold prices have also climbed. In New York, gold futures saw an increase of 0.49%, reaching USD 2,788.35 per ounce. The global uptick in gold prices has contributed to the positive sentiment in India’s gold futures market. This rise reflects investor interest in gold as a safe investment option amid economic uncertainties worldwide.
Why Gold Futures Are Rising
Market analysts say that the rise in gold prices is due to several factors. The recent increase in physical demand for gold is a significant driver, as higher demand usually encourages speculators and investors to add more positions in gold futures. Furthermore, the global price surge also impacts India’s gold market, adding to the upward movement in prices. Investors often turn to gold as a stable asset, especially in times of global economic concerns or when inflation is high.
Role in Investment Portfolios
With gold prices increasing, many investors look to it as a hedge against economic instability. Gold has traditionally been viewed as a safe investment that retains value. Given the current economic climate, analysts suggest that gold may remain a popular choice among investors, with futures prices continuing to show volatility.
