In the international market, spot gold rose 0.2% to $3,359.81 per ounce at 0410 GMT, while US gold futures for December delivery climbed 0.3% to $3,408.50 an ounce.
In India, according to Goodreturns, prices stood at:
- ₹1.01 lakh per 10 grams for 24 karat gold
- ₹92,900 per 10 grams for 22 karat gold
- ₹76,010 per 10 grams for 18 karat gold
Why prices are risingMarket sentiment has shifted after US consumer prices in July rose only marginally, reinforcing the likelihood of a rate cut. Traders now consider a cut at the September 17 Fed meeting almost certain, with around 6% odds of a larger 50 basis points reduction.
A weaker dollar, near one-week low US Treasury yields, and concerns over global trade tensions are also supporting safe-haven demand.
“The technical setup of gold looks really constructive. The trend still looks higher. We just basically need to see the market break through $3,400 level on a sustained basis,” said Kyle Rodda, financial market analyst at Capital.com.Technical outlook
According to Augmont Bullion, after touching $3,500 an ounce (~₹1.02 lakh per 10 grams) recently, gold prices have retraced below $3,400 an ounce (~₹1 lakh per 10 grams) and may consolidate with a bullish bias towards $3,450 an ounce (~₹1.01 per 10 grams). Support is seen at $3,350 per ounce internationally and ₹98,500 per 10 grams in India, while resistance is pegged at $3,480 an ounce and ₹1.01 lakh per 10 grams respectively.
Rahul Kalantri, VP – Commodities at Mehta Equities, said, “Weakness in the dollar index and 10-year Treasury yields, coupled with growing expectations of a Fed rate cut in September, are supporting bullion.”
What lies ahead for investors
Augmont notes that traders are almost fully pricing in a 25-basis point Fed rate cut in September, with some preparing for a larger 50-basis point move. Non-yielding assets like gold tend to perform well in a low interest-rate environment.
However, analysts suggest that investors monitor upcoming US data releases – including producer prices, retail sales, and jobless claims – as these will influence the Fed’s policy path and gold’s trajectory.
–With Reuters inputs
