Gold Prices Rise on Fed Rate Hold Expectations

Gold prices have risen by 0.86 percent over the past week due to expectations that the US Federal Reserve may maintain its current interest rate policy.

The Fed's upcoming policy meeting has sparked hopes of a rate hold, which is beneficial for gold as it doesn't generate interest income and becomes more attractive when rates are low.

Recent US inflation and employment data have reinforced this expectation. The July Consumer Price Index rose 0.1 percent month-on-month, in line with forecasts, while weaker employment data has reduced the likelihood of a near-term rate hike.

The Indian rupee price of MCX gold futures for October delivery increased by 0.73 percent to Rs 1,54,590, while MCX silver futures for September edged up 0.15 percent to Rs 2,36,272 per kg.