Gold Soars ₹600 as Weaker Dollar and Fed Easing Boost Demand
Gold prices rebounded in India's national capital New Delhi on Monday, rising by ₹600 to reach ₹1,56,800 per 10 grams. This recovery was largely driven by a weaker US dollar and positive trends in overseas markets.
Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities, attributed the increase in gold prices to the dollar's weakness and eased expectations of aggressive interest-rate tightening by the US Federal Reserve.
The recent economic data from the US showed moderate inflation, weaker employment conditions, and softer retail sales, which lowered expectations of further monetary policy tightening and put pressure on the dollar.
A weaker dollar typically makes gold cheaper for buyers using other currencies, boosting global demand for the precious metal. Spot gold rose 0.48 per cent to $4,397.59 per ounce in international markets, while silver gained more than 1 per cent to $65.58 per ounce.