Gold rises over 3.1 per cent in a week on easing Fed concerns
Gold posted its first weekly gain since May, rising 3.1 per cent as weaker US jobs data and lower energy prices eased expectations of further Federal Reserve rate hikes. Improved investor sentiment and a softer dollar supported bullion prices throughout the week
Mumbai: Gold recorded its first weekly gain since May as traders’ expectations for further US Federal Reserve rate hikes moderated, pushing bullion prices up by 3.1 per cent for the week.
Soft US jobs data and lower energy prices led investors to reduce expectations of further monetary policy tightening. However, on Friday, MCX gold August futures eased 0.01 per cent, while MCX silver July futures inched up 0.04 per cent. Currently, gold futures stand at Rs 1,47,365, while silver futures stand at Rs 2,37,499 per kg.
The price of 10 grams of 24-carat gold stood at Rs 1,46,344 on Friday, up from Rs 1,41,911 at Monday’s market opening, according to data published by the India Bullion and Jewellers Association (IBJA).
“Gold extended its recovery for the fourth consecutive session and touched a 10-day high on Friday. The rebound comes after more than a month of sustained selling following the May 13 import duty hike, with improving sentiment supported by a softer US dollar,” an analyst said.
The analyst said the recent pullback in the Dollar Index had encouraged fresh buying in bullion and forecast that bullion is expected to trade in the Rs 1,45,000-1,49,000 range, with global cues continuing to drive sentiment.
Market participants said softer US labour data and easing energy costs reduced the probability of further Fed tightening. US hiring slowed sharply in June and traders trimmed the probability of a quarter-point rate increase at the Fed’s next meeting to below 20 per cent, down from roughly one-third earlier in the week.
Lower energy costs and softer job growth have led analysts to forecast a gradual easing of inflationary pressures in the coming months.
Oil prices have witnessed their sharpest quarterly correction since 2020 as shipments from Saudi Arabia and the United Arab Emirates neared pre-war levels.
US President Donald Trump and allies have renewed efforts to clear the way for more of the president’s own nominees to the Federal Reserve after the Supreme Court blocked an attempt to remove Governor Lisa Cook.
Similar efforts last year challenging the Fed’s independence helped fuel gold’s rally as investors sought protection against potential policy shifts.
