Gold Posts First Weekly Gain Since May As Fed Rate Hike Fears Ease

Gold recorded its first weekly gain since May, rising about 3.1% as easing trader anxieties over potential US Federal Reserve rate hikes brought relief to investors.

Investors lowered their expectations for monetary policy tightening amid weak US jobs data and declining oil prices.

On Friday, despite this, MCX gold August futures dropped by 0.01 per cent, while MCX silver July futures rose significantly by 0.04 per cent.

Gold futures are currently quoted at Rs 1,47,365 per kg, while silver futures are priced at Rs 2,37,499 per kg.

According to IBJA data, 24-carat gold prices rose from Rs 1,41,911 on Monday to Rs 1,46,344 on Friday.

According to an analyst, gold rose for the fourth straight day, hitting a 10-day high on Friday. This recovery follows a month of heavy selling caused by the May 13 import tax hike. Now, a weaker US dollar is helping prices bounce back.

As the US dollar dropped, people started buying more precious metals.

Experts predict gold prices will hover between Rs 1,45,000 and Rs 1,49,000 depending on global trends.

Softer US job growth data and lower energy prices have decreased the chances of further tightening by the Federal Reserve.

Slow US hiring in June prompted traders to lower the chances of a Fed rate hike from 30% to under 20%.

In the coming months, researchers predict a gradual relief in inflation as energy costs decline and job growth softens.

As imports from Saudi Arabia and the UAE approach pre-war levels, oil prices saw their worst quarterly fall since 2020.

After the Supreme Court blocked Donald Trump from removing Governor Lisa Cook, he and his allies pushed harder to control the Federal Reserve.

Similar initiatives that questioned the Fed’s independence fueled Gold’s surge last year, as investors sought security against future policy changes.

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