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Gold Gains Over 1% As Oil Cools, Fed Stays Hawkish
Gold prices rose by more than 1% during the week.
Cheaper crude oil helped make gold more attractive to investors.
Oil fell below $100 per barrel after fears about a major Saudi pipeline disruption weakened.
However, the Federal Reserve made borrowing costs higher by raising interest rates.
The Fed also suggested that more rate increases could come.
Higher interest rates and Treasury yields can make gold less attractive because gold does not pay interest.
Gold futures fell on Friday as some traders took profits.
Silver received support because analysts expect its supply to remain lower than demand next year.
24-carat gold rose nearly 1.18% over the week to ₹1,53,727 per 10 grams on Friday.
MCX October gold futures fell 0.84% on Friday amid profit-booking, while December silver futures slipped 0.16%.
Gold was supported by crude oil falling below $100 per barrel after concerns over Saudi pipeline disruptions eased.
The Federal Reserve raised interest rates by 25 basis points to a 3.75%–4% target range and signaled possible further tightening.
Silver found support from expectations of a sixth consecutive annual supply deficit in 2026, estimated at 46.3 million ounces.
- Who
- Gold and silver markets, investors, the Federal Reserve, and oil-market participants.
- What
- Gold gained nearly 1.18% during the week, while hawkish Federal Reserve signals limited further gains.
- Where
- The reported gold prices are for India, with market factors involving the United States, Saudi Arabia, and the Strait of Hormuz.
- When
- Gold prices ended the week on Friday; the Fed’s rate decision and the cited 2026 silver forecast were also discussed.
- Why
- Cooling crude oil prices supported gold, while higher interest rates and Treasury yields pressured non-yielding precious metals.
Factors Supporting Precious Metals
Factors Limiting Precious Metals
Crude oil and market sentiment
Factors Supporting Precious Metals
Crude oil falling below $100 per barrel supported gold after fears of major Middle East supply disruptions eased.
Factors Limiting Precious Metals
The decline in oil prices reflected reduced concern about supply disruption, limiting the urgency for some safe-haven buying.
Interest rates and yields
Factors Supporting Precious Metals
Gold and silver benefited from lower oil-related inflation concerns and silver’s expected supply deficit.
Factors Limiting Precious Metals
The Federal Reserve’s 25-basis-point rate hike, possible further tightening, and Treasury yields above 5% pressured non-yielding gold and silver.
Key facts
- 24-carat gold price
- ₹1,53,727 per 10 grams on Friday, compared with ₹1,51,938 a week earlier
- Weekly gold change
- Nearly 1.18% gain
- MCX October gold futures
- ₹1,54,263 per 10 grams, down 0.84% on Friday
- Crude oil
- Fell below $100 per barrel after three consecutive declining sessions
- Federal Reserve target range
- 3.75%–4% after a 25-basis-point rate increase
- Next rate-hike probability
- Markets placed the probability of another October increase at around 55%
- Expected 2026 silver deficit
- 46.3 million ounces, potentially marking a sixth consecutive annual deficit
Sources
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