Gold Prices Rise on Weaker US Data, Fed Rate Hike Expectations

Gold prices surged on a weekly basis as weaker-than-expected US economic data reinforced expectations that the US Federal Reserve will hold interest rates unchanged. The MCX gold futures (October) gained 0.73% and stood at Rs 154,590, while MCX silver futures (September) advanced 0.15% to Rs 2,36,272 per kg.

The price of 10 grams of 24-carat gold rose to Rs 1,49,621 on Friday, up from Rs 1,42,863 seen on Monday at market opening, according to the India Bullion and Jewellers Association (IBJA). The yellow metal climbed to its highest level in over two months before modest profit-taking later in the week.

The weekly gain was also driven by crude oil staying volatile due to lingering Middle East tensions, lower Treasury yields, and a weaker US dollar. Market participants said that gold and silver benefited from these factors.