Gold gets its glitter back, thanks to US dollar slide and failed mutiny in Russia

By India Today Business Desk: Gold prices rose for the second straight session on Tuesday, as the US dollar continued to slide and hit a five-week low, and amid uncertainty in Russia after a failed Wagner mutiny.

On the Multi Commodity Exchange (MCX), gold futures for August delivery rose 0.35 per cent to Rs 58,460 per 10 grams, while silver futures for September delivery rose 0.80 per cent to Rs 69,449 per kilogram.

Analysts said gold prices were supported by safe-haven demand amid uncertainty in Russia after the aborted uprising by Wagner mercenaries raised questions about the authority of President Vladimir Putin.

Watch | Wagner mutiny: Has Vladimir Putin’s invincible image taken a hit?

Will gold prices gain?

Anuj Gupta, Vice President — Research at IIFL Securities told Livemint that gold prices are expected to continue rising in the near term due to uncertainty in Russia and a slide in the US dollar. He noted that the US dollar had slipped to a five-week low.

“Gold prices are expected to continue to rise in the near term, as the uncertainty in Russia is likely to keep safe-haven demand alive,” he said.

Gupta added that gold prices get support from the US Federal Reserve’s decision to raise interest rates, which could drive inflation – a situation that will fuel demand for gold, considered a hedge against inflation.

Meanwhile, analysts also said gold prices may get further support from the stable in US dollar. On the MCX index, gold prices could face some resistant at Rs 58,700 levels per 10 grams, but could rise to Rs 59,300 if they break through.