Gold Rebounds with Dollar Weakness and Easing Bond Yields

Gold prices rebounded in India as the US dollar weakened and global bond yields eased from multi-decade highs, according to Kedia Advisory. The precious metal settled 2.42% higher at ₹157,996 on Monday.

The Federal Reserve's meeting minutes are expected to provide clues on interest-rate outlook amid persistent inflation risks. Markets are pricing a 67% probability of the Fed holding rates steady, while expectations of a rate hike have declined following softer US economic indicators.

Geopolitical uncertainty also supported safe-haven demand, with Trump stating that no talks were underway with Iran and insisting the waterway remained open, contradicting Iran's claim that it was closed. The CFTC data showed net-long positions increased by 9,470 contracts in the week ended August 11.

Physical demand remained weak, particularly in India, where gold discounts widened to as much as $62 an ounce, the highest level in more than two months, curbing consumption. India's net gold imports declined 23% year-on-year to 98.1 tonnes in the June quarter, while gold demand fell 6% to 131.4 tonnes.