Gold Surges 5% on Weaker Dollar and Softer US Inflation

Gold prices surged nearly 5% on a weekly basis, boosted by a weaker US dollar and reduced expectations of an imminent Federal Reserve rate hike.

The price of 24-carat gold rose to Rs 1,58,860 for 10 grams, up from Rs 1,54,066 at market opening on Monday, according to the India Bullion and Jewellers Association (IBJA).

A softer US inflation rate, weaker retail activity, and subdued consumer sentiment continued to temper expectations of near-term monetary tightening, with markets largely pricing out a September rate increase.

The US Treasury's announcement that it would double its long-dated bond buybacks pushed long yields lower, creating a supportive backdrop for gold and silver.