Indian Gold Price Jumps Rs. 1050 In 5 Days With Rising Safe Have Demands, US Dollar Falls To 111.13

Globally gold markets fell sharply from mid-September, due to US Fed interest rate hike concerns, reflecting the same trend in India. Additionally, the sudden gain in the US Dollar index pulled the gold markets down. However, the markets started to recover in the first week of October as safe haven demands are flourishing, as in the US manufacturing activities did not show a positive trend in September.

Gold is a Dollar dominated asset class, and with a fall in the US Dollar, gold rates tend to gain globally. Today, the US currency fell to 111.73, down by 0.35%, till last traded, helping the gold markets to grow. The Comex gold futures were quoted at $1,694.80/oz, up by 1.36%, till last traded. Yesterday it was last traded at $1,672/oz. In India, the Mumbai Commodity Exchange (MCX) gold in October future is quoted at Rs. 51002/10 grams, down by 1.61%, from the last trading day. This has helped gold prices in India to grow sharply. In the country, today, on October 3, the 22 carat gold rate is quoted at Rs. 46,850/10 grams, and 24 carat gold rate is quoted at Rs. 51,110/ 10 grams, gaining by Rs. 350-380/10 grams respectively.

Meanwhile, the 2-year Treasury bond yield fell around 4.07%, and the 10-year U.S. Treasury yield fell around 3.621%.

According to the latest data from the Institute for Supply Management, manufacturing activity barely showed any expansion in September. The ISM manufacturing PMI dropped to 50.9% in the last month. It has missed analysts' expectations and quoted lower than August's reading of 52.8%. Regarding PMI, analysts were expecting it to be 52.5%.

On that matter, Timothy Fiore, Chair of the ISM Manufacturing Business Survey Committee stated, "The U.S. manufacturing sector continues to expand, but at the lowest rate since the pandemic recovery began. Following four straight months of panelists' companies reporting softening new orders rates, the September index reading reflects companies adjusting to potential future lower demand."