Gold Price Rises For Second Straight Session Above ₹1.50 Lakh As US Yields Ease; Can The Recovery Continue?
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Gold extended its recovery on Friday, moving above ₹1.50 lakh on MCX as US Treasury yields eased and the dollar rally paused. The focus now shifts to whether international gold can sustain the rebound and move past the $4,220-$4,230 resistance zone.
Gold prices extended their recovery on Friday, October 9, with MCX gold trading above ₹1.50 lakh per 10 grams as a pause in the dollar rally and easing US Treasury yields brought buyers back after this week's sharp fall.
MCX gold futures for December 2026 delivery were trading around ₹1,50,999 per 10 grams in morning trade. In the international market, spot gold rose 0.9% to $4,169.32 an ounce, while US gold futures gained 0.9% to $4,194.40. Gold had fallen to a two-month low on Wednesday before recovering over the past two sessions.
The latest rebound comes as the benchmark US 10-year Treasury yield declined for a second straight session and the dollar's recent rally paused. Traders are also looking ahead to fresh US economic data for clues on how the Federal Reserve could move on interest rates in the coming months.
Why Are Gold Prices Rising Today?
The fall in US bond yields has provided some relief to gold after rising borrowing costs weighed heavily on the metal earlier this week. The dollar has also eased after its recent run-up, supporting international bullion prices.
Attention is now shifting to the Federal Reserve. The US central bank raised its policy rate by 25 basis points last month, while markets are currently assigning a much lower probability to another increase in October than in December.
The recovery, however, comes after a volatile week for bullion. Spot gold's move back above $4,160 follows Wednesday's two-month low, leaving traders watching whether the rebound can hold as US yields and rate expectations continue to change.
Anindya Banerjee, Head of Research – Currency, Commodities and Interest Rates at Kotak Neo, said gold's chart continues to show lower highs and lower lows since the end of September despite the latest recovery.
He sees $4,150 as an important near-term level, followed by resistance around $4,220-$4,230. A clear move above the $4,220-$4,230 zone would indicate that the recent downtrend has ended.
Gold Price Outlook: Can Gold Hold Above ₹1.50 Lakh?
Gold's return above ₹1.50 lakh has put the domestic price level back in focus after the recent correction.
In the international market, the next test will be whether gold can build on its recovery above $4,150 and move towards the $4,220-$4,230 resistance zone.
Banerjee sees support around $4,050, followed by $4,000 if prices come under renewed pressure. Until gold clears the higher resistance zone, the broader move could remain sideways to lower.
For domestic prices, movements in the rupee will also remain important alongside international gold prices. For now, softer US Treasury yields and a pause in the dollar's rally have helped gold recover, but upcoming US economic data and changing expectations for the Fed's next rate move could determine whether the rebound extends.
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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