Gold Gains 0.86 percent in a Week as Fed Rate-Hold Expectations Strengthen

Gold Gains 0.86 percent in a Week as Fed Rate-Hold Expectations Strengthen

New Delhi: Gold prices rose 0.86 per cent 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, improving the appeal of the non-yielding precious metal.

On Friday, MCX gold futures for October delivery gained 0.73 per cent to Rs 1,54,590, while MCX silver futures for September edged up 0.15 per cent to Rs 2,36,272 per kg. In the international market, spot gold also strengthened, supported by a softer US dollar and lower Treasury yields.

Recent US inflation and employment data have reinforced expectations that the Federal Reserve could maintain its current policy stance. The July Consumer Price Index rose 0.1 per cent month-on-month, in line with expectations, while weaker employment data further reduced the likelihood of a near-term rate hike.

Gold typically benefits from lower interest-rate expectations because the metal does not generate interest income. A softer dollar also makes gold relatively more attractive to investors holding other currencies.

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.

Beyond monetary policy, gold continues to draw support from geopolitical uncertainty, central-bank demand and concerns over the global economic and fiscal outlook. These factors could keep the precious metal in focus even as investors assess the Federal Reserve’s next policy decision.

The latest weekly gain highlights how closely gold is currently tracking expectations for US monetary policy, with economic data, dollar movements and Treasury yields likely to remain key drivers of prices in the near term.