Shares of Multi Commodity Exchange of India (MCX) surged 8% in three sessions to Rs 3,211 on Friday, tracking a third straight session of gains in gold and silver prices, supported by a weaker US dollar and easing concerns over long-term yields.

MCX shares have gained 15% over the past month. The stock is up around 45% so far this calendar year and 101% over the past year. Over a three-year period, the stock has surged 932%, while it has rallied 970% in five years.

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In the domestic market, MCX silver futures for September 2026 delivery were up Rs 1,915 at Rs 2,45,158 per kg. Gold futures for October 2026 delivery rose by Rs 1,205 to Rs 1,60,630 per 10 grams. In the last three sessions, silver has jumped Rs 13,000, while gold has risen nearly Rs 6,500/10 grams.

The U.S. dollar was headed for a weekly decline, making dollar-priced commodities more affordable for holders of other currencies.

What lies ahead for investors?

HDFC Securities also recently reaffirmed its ‘Buy’ rating on the shares of MCX, saying regulatory easing could expand the participant base, broaden product offerings and lower margin requirements.

The domestic brokerage expects FPI participation in deliverable contracts and new bullion and metals index options to drive the next leg of growth, with a potential 20-25% increase in options premium. It also sees structural headroom for volume growth as commodity derivatives remain a small share of equity-market trading.

Global brokerage UBS recently upgraded its rating on the shares of MCX to ‘Buy’ from ‘Neutral’, raising its target price to Rs 3,800 from Rs 3,600. Following a sharp correction, UBS feels that the stock now trades at an attractive valuation.

According to the international brokerage, key regulatory developments serve as important medium-term growth catalysts for the exchange.

Market regulator Sebi’s recent consultation paper proposing Foreign Portfolio Investment (FPI) participation in physically settled non-agricultural commodity derivatives and index derivatives is expected to structurally deepen the commodity market.

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Furthermore, continued volatility in key commodities driven by geopolitical issues in the Middle East is expected to support near-term volume trends.