Commodities
Gold Price Rises Despite Falling Futures Contracts in India and US
The Indian spot price of gold rose on Wednesday despite falling futures contracts in India and the US. The all-India average spot price increased by INR 130 per 10 grams to INR 152,266 per 10 grams.
Market sentiment was affected by concerns over higher interest rates due to hawkish remarks from several US Federal Reserve officials. Boston Fed President Susan Collins and Richmond Fed President Tom Barkin warned that inflation might stay above the 2% target, signaling potential support for further policy tightening.
The dollar index hit a near eight-week high of 100.86, making dollar-denominated commodities like gold more expensive for holders of other currencies. Record-setting imports from China are providing a strong demand floor for gold.