Gold Prices Rebound in India on Weaker Dollar

Gold prices rebounded by Rs600 to Rs1,56,800 per 10 grams in New Delhi as a weak US dollar and firm global trends boosted demand for bullion. The yellow metal of 99.9 percent purity had closed at Rs1,56,200 per 10 grams on Friday.

According to local traders, silver remained flat at Rs2,40,000 per kilogram for the second straight session. Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, attributed gold's advance to a softer dollar and easing expectations for aggressive Federal Reserve tightening following weaker US economic indicators.

Gandhi noted that moderate US inflation data last week, combined with softer employment and retail sales figures, reduced expectations of further monetary policy tightening. This kept the dollar under pressure, improving demand for precious metals.