Gold Prices Rise Amid US Rate Hike Speculations Despite Weekly Losses

Gold and silver prices have rebounded despite expectations of US rate hikes. According to data, gold rose by 1.2% to $4,366.69 per ounce, while silver increased by 1.4% to $64.43 per ounce. This uptick in prices occurred as investors entered the market to buy after recent declines.

However, both metals remain poised for weekly losses, with gold down approximately 1.4% and silver experiencing a fall of 2.6% for the week so far. Senior Analyst Saumil Gandhi from HDFC Securities noted that gold remains under pressure and is on track for a third consecutive weekly decline.

The context of rising inflation has been reinforced by recent producer price data, indicating a potential uptick in underlying inflationary pressures in the US economy, especially influenced by escalating energy costs. Consequently, traders are now estimating a 70% likelihood of a Fed rate hike in the upcoming week.