Gold Prices Rebound in India Amid Weaker Dollar and Firm Global Trends
Gold prices in India surged by Rs 600 to reach Rs 1.56 lakh per 10 grams on Monday, driven by a weaker US dollar and firm global trends.
The Federal Reserve's policy expectations had an impact on the market, as moderate US inflation data last week, along with softer employment and retail sales figures, reduced expectations of further monetary policy tightening.
As a result, the US dollar remained under pressure, improving demand for precious metals. Spot gold was trading 0.48 per cent higher at USD 4,397.59 per ounce, while silver rose more than 1 per cent to USD 65.58 per ounce.
Analysts say the recovery is likely to continue due to dollar weakness and capped oil prices. However, the geopolitical backdrop remains a concern, with US President Donald Trump preparing to impose more economic sanctions on Iran.
The next signpost for traders will be the Federal Reserve's FOMC meeting minutes this week, which may provide further cues on the Central bank's interest-rate outlook and the direction of bullion prices.