Gold Prices Rise Amid Expectations of Stable Interest Rates

Gold prices surged in India on the week ending August 15 as investors anticipated that the US Federal Reserve may hold interest rates unchanged. The price of gold futures (October) on the Multi Commodity Exchange (MCX) rose 0.73% to Rs 154,590, while silver futures (September) advanced 0.15% to Rs 236,272 per kg.

The increase in gold prices can be attributed to weaker-than-expected US economic data, which reinforced expectations that the Federal Reserve will keep interest rates steady at its September meeting. The price of 10 grams of 24-carat gold also rose to Rs 1,49,621 on Friday from Rs 1,42,863 seen on Monday.

Market participants pointed out that crude oil prices remained volatile due to lingering Middle East tensions, lower Treasury yields, and a weaker US dollar. This volatility benefited both gold and silver, with the yellow metal reaching its highest level in over two months before modest profit-taking later in the week.