Gold, Silver Futures Surge on US Treasury Buyback News

Gold and silver futures posted significant gains on Wednesday, driven by the US Treasury’s announcement of increased buybacks of long-term government bonds. This development propelled gold prices to a three-month high during the session.

MCX Performance Highlights

On India’s Multi Commodity Exchange (MCX), gold futures for October saw notable movement, opening higher and trading up through the day.

• October gold contract opened at ₹1,63,202 per 10 gram.
• It increased by ₹320 from its previous close.
• The contract traded at ₹1,63,136, up ₹254 during the session.
• Session high reached ₹1,63,202, with a low of ₹1,62,021.
• The year’s highest level for this contract stands at ₹1,80,779.

Silver futures also experienced a sharp upward trajectory on MCX, with the September contract leading the gains.

• September silver contract opened at ₹2,45,583 per kg.
• It rose by ₹1,456 from the prior close.
• The contract traded at ₹2,45,700, marking an increase of ₹1,573.
• It touched a high of ₹2,46,180 and a low of ₹2,45,430.
• The year’s highest level for silver futures was ₹4,20,048 per kg.

Global Commodity Movement

Internationally, the Comex market reflected similar positive sentiment for precious metals, with gold and silver trading higher.

• Comex gold opened at $4,715.70 per ounce.
• It traded at $4,705.40 per ounce, up $10.90.
• The highest point for Comex gold this year was $5,586.20 per ounce.
• Comex silver futures opened at $68.63 per ounce.
• They traded at $69.18 per ounce, up $0.50.
• Its yearly high reached $121.79 per ounce.

The US Treasury’s move to increase long-term government bond buybacks directly fueled this demand, positioning gold globally near $4,700 per ounce and silver around $69 per ounce.