Gold Sees Weekly Gain as Fed Rate Hike Chances Diminish
Gold prices surged this week as investors bet that the US Federal Reserve will keep interest rates unchanged. The MCX gold futures (October) gained 0.73 per cent and stood at Rs 154,590 on Friday, while MCX silver futures (September) advanced 0.15 per cent to Rs 2,36,272 per kg.
The price of 10 grams of 24-carat gold was at 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). Market participants attributed this rise to several factors, including weaker-than-expected US economic data, crude oil volatility, lower Treasury yields, and a weaker US dollar.
Gold's monthly gain exceeded 10 per cent, with the yellow metal climbing to its highest level in over two months before modest profit-taking. Meanwhile, silver outperformed gold, narrowing their ratio. Commodity market experts predict resistance at $4,470-$4,500 for COMEX gold and Rs 1,55,500-Rs 1,56,000 for MCX Gold, with support at $4,400-$4,370 and Rs 1,53,300-Rs 1,52,700 respectively.