Gold prices edge higher on weaker dollar, gain Rs 6,000 this week
Gold prices in the international market edged higher on Friday, supported by a weaker dollar even as hawkish comments from U.S. Federal Reserve officials kept gains in check. Mirroring the global uptick, MCX gold futures opened firm at Rs 1,27,022, up Rs 271 (0.21%), while silver futures started at Rs 1,63,025, gaining Rs 555 (0.34%) in early trade.
The yellow metal showed impressive gains, surging by Rs 5,955/10 g in this week so far. Silver too showed resilience, having shot up by Rs 15,300/kg in the same time period.
Internationally, gold prices edged higher on Friday, supported by a weaker U.S. dollar, and were on track for a weekly gain. However, the upward momentum was restrained by recent hawkish remarks from U.S. Federal Reserve officials, which tempered expectations of a possible rate cut in December.
As of 0200 GMT, spot gold was up 0.4% at $4,188.93 per ounce, while U.S. gold futures for December delivery remained steady at $4,191.90 per ounce. For the week so far, bullion is up 4.8%, buoyed by a softer dollar. The dollar index was on course for its second straight weekly decline, enhancing gold’s appeal for investors holding other currencies.
Concerns over inflation and signs of resilience in the U.S. labour market, following two rate cuts this year, have led many Federal Reserve policymakers to adopt a cautious stance toward further easing. Last month, the Fed lowered interest rates by 25 basis points, but Fed Chair Jerome Powell indicated restraint on further reductions, citing limited data availability.
According to CME Group’s FedWatch tool, traders are now pricing in a 51% probability of a quarter-point rate cut next month, down from 64% in the previous session.Non-yielding gold typically performs well in low-interest-rate environments and during periods of economic uncertainty. Meanwhile, the reopening of the U.S. government after a record 43-day shutdown helped ease some investor concerns and restored the flow of economic data.Today, the US Dollar Index, DXY, was hovering near the 99.16 mark, falling 0.02%.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 95,048/8 grams, while pure gold (24 carat) prices stand at Rs 1,02,312/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 95,160/8 grams, while pure gold (24 carat) prices stand at Rs 1,02,360/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 94,464/8 grams, while pure gold (24 carat) prices stand at Rs 1,01,648/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 95,032/8 grams, while pure gold (24 carat) prices stand at Rs 1,02,224/8 grams.
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