Gold Prices Rise on Weaker Dollar and Central Bank Demand
Gold prices rose by 1.89% to Rs.162,438 as investors questioned whether the US Treasury's expanded bond-buyback programme could undermine market confidence.
The weaker dollar supported gold, which was also bolstered by robust investment demand and continued central bank purchases.
Treasury Secretary Scott Bessent indicated that the government may further increase Treasury repurchases after announcing plans to double longer-dated debt buybacks to contain bond yields.
Two Federal Reserve officials expressed caution over the potential implications of Treasury debt-management changes for monetary policy.
Globally, Q2 gold demand remained steady at 1,268.9 tonnes, supported by a sharp recovery in central-bank purchases to 289 tonnes, despite 45 tonnes of ETF outflows.