2 weeks ago
Gold Posts Weekly Gain as Fed May Hold Rates
Gold is a shiny yellow metal that people buy because it keeps its value.
This week, the price of gold in India and around the world went up.
It rose almost one per cent compared with last week.
The main reason is that the US Federal Reserve, the big bank that controls money in America, may keep interest rates the same.
When the economy gives weak signs, the Fed often holds rates steady, and that makes gold more attractive.
The price of 10 grams of 24-carat gold in India went from about Rs 1,42,863 on Monday to Rs 1,49,621 by Friday.
Gold reached its highest price in more than two months before some people sold it to take profits.
Silver and oil prices also went up this week.
Oil rose because worries about tensions in the Middle East, near the Strait of Hormuz, made markets unsure.
Everyone is now waiting for notes from the Fed's July meeting, due on August 19, to see what it will do next.
Gold prices rose 0.86 per cent on a weekly basis as weaker-than-expected US economic data reinforced expectations that the US Federal Reserve will hold interest rates unchanged.
MCX gold futures (October) gained 0.73 per cent to Rs 154,590, while MCX silver futures (September) advanced 0.15 per cent to Rs 2,36,272 per kg on Friday.
The price of 10 grams of 24-carat gold stood at Rs 1,49,621 on Friday, up from Rs 1,42,863 at Monday's market opening, according to IBJA data.
Gold climbed to its highest level in over two months before modest profit-taking, posting a monthly gain of more than 10 per cent.
Crude oil rebounded from the previous week's sell-off, with WTI and Brent posting solid weekly gains as hopes for a near-term US-Iran resolution over the Strait of Hormuz faded.
- Who
- The US Federal Reserve, whose interest-rate stance is driving bullion markets, along with commodity investors and experts tracking India's MCX gold and silver futures.
- What
- Gold prices rose 0.86 per cent for the week, with MCX October futures up 0.73 per cent to Rs 154,590, as weaker-than-expected US economic data reinforced expectations that the Federal Reserve will hold interest rates unchanged; silver and crude oil also gained.
- Where
- India (New Delhi dateline, with MCX and IBJA prices), driven by international factors including US markets, COMEX, and the Strait of Hormuz.
- When
- The week ending Friday, with the Federal Reserve's July policy meeting minutes due on August 19.
- Why
- Weaker-than-expected US economic data reinforced expectations that the Federal Reserve will hold rates, supported by volatile crude prices from lingering Middle East tensions, lower Treasury yields, and a weaker US dollar.
Key facts
- Weekly gold gain
- 0.86 per cent
- MCX gold futures (October)
- Rs 154,590 (up 0.73%)
- MCX silver futures (September)
- Rs 2,36,272 per kg (up 0.15%)
- Gold price (10g, 24-carat)
- Rs 1,49,621 on Friday vs Rs 1,42,863 at Monday opening (IBJA)
- Monthly gold gain
- More than 10 per cent
- US core CPI (July)
- 2.5 per cent
- Fed July meeting minutes
- Due August 19
- COMEX gold levels
- Resistance $4,470–$4,500; support $4,400–$4,370
Sources
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