Gold, Silver Prices Surge on Weaker Dollar, Shift in Fed Rate Expectations
Gold and silver prices rose on the Multi Commodity Exchange (MCX) on August 17, following firm global trends. The US dollar weakened due to softer economic data, reducing expectations of a near-term Federal Reserve interest-rate hike.
The weaker dollar makes gold cheaper for holders of other currencies, supporting demand for the precious metal. Expectations of lower interest rates also support gold, as the opportunity cost of holding a non-yielding asset like gold declines.
Darshan Desai, CEO of Aspect Bullion & Refinery, said: 'Gold and silver are entering the new week on a firm note, supported by a softer US dollar, shifting rate expectations and continued safe-haven demand.'
The rupee weakened to around ₹95.59 per dollar in early trade, pushing up the landed cost of internationally priced commodities like gold and silver.