Gold Prices Soar as Weak Dollar Boosts Bullion Demand

Gold prices rebounded in India's national capital on Monday, rising by Rs 600 to Rs 1,56,800 per 10 grams. This increase is attributed to a weak US dollar and firm global trends, which have boosted demand for the precious metal.

The price of gold had closed at Rs 1,56,200 per 10 grams on Friday. However, silver prices remained flat at Rs 2,40,000 per kilogram for the second consecutive session, according to local traders.

Analysts point out that a softer dollar and easing expectations for aggressive Federal Reserve tightening have contributed to gold's recovery. This is particularly evident in the US, where moderate inflation data last week, combined with weaker employment and retail sales figures, reduced expectations of further monetary policy tightening.