Why gold is headed for its best week since April

Gold is heading for its strongest weekly gain in over a month, buoyed by mounting concerns about the US fiscal outlook. Investors are turning to the metal as a hedge, following the passage of a massive tax and spending bill in the US House and signs of soft demand in bond auctions.

These developments have reignited fears over rising national debt.

Dollar slide boosts bullion appeal
A weakening dollar has added momentum to gold’s rally. The greenback has dropped more than 1% this week, its worst weekly performance since early April. This decline has made dollar-denominated gold cheaper for international buyers, reviving global interest in the metal.

India gold prices surge past ₹96,000 per 10 grams on MCX

In India, gold climbed sharply on the MCX, rising over ₹800 to ₹96,400 per 10 grams. Spot prices reached ₹97,530 for 24K gold. The rally reflects both global cues and local currency movements.

“Gold’s upside was supported by a softer dollar and rising uncertainty in global markets,” said Jateen Trivedi, VP Research Analyst, LKP Securities.

Geopolitical tension adds fuel

Tensions in West Asia have added to the metal’s appeal. Iran warned the US of consequences if Israel strikes its nuclear facilities, raising geopolitical stakes. Investors often flock to gold during periods of global instability.

Analysts expect volatility ahead

Market participants remain watchful, as upcoming US data—including PMI and home sales—could influence short-term trends.

Rahul Kalantri of Mehta Equities notes that while Bitcoin’s rise temporarily diverted attention, gold remains supported by weak equity markets and global unrest.

Support for gold is seen near ₹94,880 per 10 grams, with resistance at ₹96,240 per 10 grams in India. Globally, key levels range between $3,260 and $3,345 per ounce.

–With Reuters inputs