Gold Prices Rebound as Softer Inflation Data Cuts Interest Rate Expectations
Gold prices in India have been under pressure due to rising US bond yields and a stronger dollar, which has made non-yielding assets like gold less attractive.
However, softer-than-expected US inflation data has provided some support to gold by reinforcing expectations that the Federal Reserve may keep interest rates unchanged at its October meeting.
The latest available trading session rates on MCX show gold settled 0.14% higher at Rs 1,49,036 per 10 grams. On MCX, the gold futures price was Rs 1,50,250 per 10 grams, compared with Rs 1,50,390 in the previous trading session.
Physical gold demand has improved modestly ahead of the festive season due to lower domestic prices, with dealer discounts narrowing to around USD 43 per ounce from USD 60 per ounce in the previous week.