Gold Soars 5% Amid Weaker US Dollar and Reduced Rate Hike Expectations

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

The MCX gold futures (October) were flat, while MCX silver futures for September advanced 1.28%. The yellow metal stood at Rs 1,62,440 per kg, with the price of 10 grams of 24-carat gold at Rs 1,58,860 on Friday.

Soft US inflation, weaker retail activity, and subdued consumer sentiment from the previous week continued to temper expectations of near-term monetary tightening. Markets largely priced out a September rate increase, analysts said.