Gold Prices Surge on Weak US Data and Rate Expectations
Gold prices rose by 0.86% on a weekly basis in India as investors awaited the US Federal Reserve's decision on interest rates. The US central bank's likely hold on rates was reinforced by weaker-than-expected economic data, which boosted gold and silver prices.
MCX gold futures for October gained 0.73% to Rs 154,590, while MCX silver futures for September advanced 0.15% to Rs 2,36,272 per kg. The price of 10 grams of 24-carat gold also rose to Rs 1,49,621 on Friday from Rs 1,42,863 at market opening.
The precious metals benefited from volatile crude oil prices, lower Treasury yields, and a weaker US dollar. Gold climbed to its highest level in over two months before profit-taking, resulting in a monthly gain of more than 10%. Silver also outperformed gold, narrowing the gold-silver ratio.