Gold rallies to Rs 1.53 lakh/10g in futures as speculators build fresh bets

New Delhi (PTI): Gold prices on Friday jumped Rs 1,044 to Rs 1,53,880 per 10 grams in futures trade as speculators created fresh positions on a firm spot demand.

On the Multi Commodity Exchange, gold contracts for April delivery traded higher by Rs 1,044, or 0.68 per cent, at Rs 1,53,880 per 10 grams in a business turnover of 1,538 lots.

Globally, gold futures rose 0.81 per cent to USD 4,962 per ounce in New York.

"Gold rose to around USD 4,960 per ounce after falling more than 3 per cent in the previous session, as markets navigated elevated volatility. The drop on Thursday occurred during a broad market selloff that led investors to liquidate precious metals to raise cash," Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said.

Gaurav Garg, Research Analyst at Lemonn Markets Desk, said global bullion prices remain significantly higher year-on-year, highlighting the strength of the prior bull run.

"Volatility is being driven by a stronger US dollar, shifting Fed rate-cut expectations, macro data surprises, and heavy profit-booking," he added.

Trivedi noted investors will now focus on the US inflation data due later in the day, which could shape expectations for the Federal Reserve's next policy move.

He added that stronger-than-expected January jobs data released earlier this week have led markets to price in a first rate cut in July rather than June.

"Nevertheless, concerns about currency debasement, central bank purchases, and geopolitical tensions continue to provide underlying support for the metal," Trivedi said.