Gold Rises as Fed Rate-Hike Expectations Fade
Gold prices rose by 0.86% on a weekly basis, supported by expectations that the US Federal Reserve may keep interest rates unchanged at its upcoming policy meeting.
A series of weaker-than-expected US economic indicators has reduced expectations of an immediate rate hike, making gold more appealing as a non-yielding precious metal.
On Friday, MCX gold futures for October delivery gained 0.73% to Rs 1,54,590, while MCX silver futures for September edged up 0.15% to Rs 2,36,272 per kg in the domestic market.
In the international market, spot gold strengthened due to a softer US dollar and lower Treasury yields.
The recent US inflation and employment data have reinforced expectations that the Federal Reserve could maintain its current policy stance. Market analysts are watching the $4,470-$4,500 per ounce zone as an immediate resistance area for international gold, while $4,400-$4,370 is seen as an important support range.