Gold Soars 5% as Weaker Dollar Dampens Rate Hike Fears

Gold prices surged nearly 5% on a weekly basis due to a weaker US dollar and reduced expectations of an imminent Federal Reserve rate hike. The price of 10 grams of 24-carat gold was at Rs 1,58,860 on Friday, up from Rs 1,54,066 seen on Monday at market opening.

Softer 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, according to analysts.

The US Treasury's announcement that it would double its long-dated bond buybacks pushed long yields of bonds lower. A temporary pullback in Treasury yields created a supportive backdrop for gold and silver.