The jump mirrors global gains as investors turned to gold amid rising geopolitical tensions, weak US Treasury demand, and a falling dollar.
Global gold hits 2-week high
Spot gold climbed 0.7% to $3,336.43 an ounce, the highest since May 9.
US gold futures also rose 0.7% to $3,337.60 an ounce.
The US dollar hovered near a two-week low, making dollar-priced gold more attractive for foreign investors.
“Gold’s bullish reversal is supported by a weaker U.S. dollar and lingering stagflation risks,” said Kelvin Wong, Senior Market Analyst at OANDA.
Why gold is rising: Key triggers
Weak demand for US bonds:
A $16 billion 20-year bond auction saw poor response, signaling low appetite for US assets.
Credit rating concerns: Moody’s recently downgraded the US credit outlook, citing rising debt.
Geopolitical risks: Escalating tensions in the Middle East and renewed uncertainty in US-China trade ties pushed investors toward gold.
Safe-haven demand: Talks between the US and Iran are set to resume on May 23, adding to geopolitical worries.
Bullion support and resistance levels
According to Rahul Kalantri, VP Commodities, Mehta Equities, gold now has support at ₹95,310–₹95,080 per 10 grams and resistance at ₹95,950–₹96,240 per 10 grams.
Outlook: More upside likely
Analysts expect gold to remain strong if global economic and geopolitical uncertainties persist.
“Gold seems to be resuming its longer-term uptrend. I’m targeting highs around $3,450–$3,500 per ounce from here,” said Ilya Spivak, Head of Global Macro at Tastylive.
–With Reuters inputs
