Gold Prices Rebound in India as Weak Dollar Boosts Demand

Gold prices in India rebounded by Rs 600 to Rs 1.56 lakh per 10 grams on August 17, as a weak US dollar and firm global trends boosted demand for bullion.

The price of gold had closed at Rs 1.56 lakh per 10 grams on Friday, but the recovery extended to international markets, with spot gold trading 0.48% higher at USD $4,397.59 per ounce.

Analysts attribute the rebound to a softer dollar and easing expectations for aggressive Federal Reserve tightening following weaker US economic indicators.

Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, noted that 'gold advanced on Monday, supported by a softer dollar and easing expectations for aggressive Federal Reserve tightening following a series of weaker US economic indicators.'