Gold Soars Nearly 5pc on Weaker Dollar and Reduced Rate Hike Expectations

Gold prices surged nearly 5 per cent on a weekly basis due to a weaker US dollar and reduced expectations of an imminent Federal Reserve rate hike, according to recent data from India. The MCX gold futures for October were flat, while the MCX silver futures for September advanced 1.28 per cent.

The price of 10 grams of 24-carat gold reached Rs 1,58,860 on Friday, up from Rs 1,54,066 seen on Monday at market opening. Analysts attributed this to softer US inflation, weaker retail activity, and subdued consumer sentiment from the previous week, which tempered expectations of near-term monetary tightening.

A US Treasury announcement that it would double its long-dated bond buybacks pushed long yields of bonds lower, creating a supportive backdrop for gold and silver. The yellow metal benefited from a second consecutive weekly gain in crude oil due to lingering tensions in West Asia, with WTI crude gaining around 5.7 per cent for the week.