Gold prices in India surged to their highest in over two months amid expectations of a US rate pause, supported by softer jobs data and cautious investor sentiment ahead of key inflation reports.
Gold prices in India ended the week higher, with 24-carat bullion rising to Rs 15,513 per gram on 16 August, the strongest level in more than two months. The latest move lifted the 10-gram rate to Rs 1,55,130, while 22-carat gold stood at Rs 1,42,200 for 10 grams and 18-carat gold at Rs 1,16,350, according to Goodreturns.
The gains came as investors scaled back expectations of another US rate increase after softer-than-expected July jobs figures. Traders are now watching this week’s US consumer price index and producer price index reports for more clues on the Federal Reserve’s next move, with lower interest-rate expectations typically supporting gold because the metal does not pay yield.
The Federal Reserve says it uses monetary policy to pursue maximum employment, stable prices and moderate long-term interest rates, with the Federal Open Market Committee meeting regularly to set the federal funds rate target. Those meetings are closely tracked by global markets because changes in US borrowing costs can influence currencies, bond yields and demand for safe-haven assets such as gold.
Silver prices were unchanged in India, holding at Rs 250 per gram and Rs 2,50,000 per kilogram, after a flat session. Goodreturns also quoted Prithviraj Kothari of RiddiSiddhi Bullions Ltd and the Indian Bullion and Jewellers Association as saying the market is balancing signs of persistent inflation against easing expectations of a September rate increase, while warning that key support levels in both gold and silver will matter if prices lose momentum.
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