Gold Hits $4,310 as Fed Hike Digests
Spot gold rose 1% to $4,310.49 per ounce. Investors are reassessing positions after the Federal Reserve's first rate hike in three years.
Spot gold rose 1% to $4,310.49 per ounce on Friday. This gain followed a near six-week low of $4,234.65 recorded on Wednesday. The metal rebounded as investors digested the Federal Reserve's latest rate hike. The central bank signaled further policy tightening ahead.
Gold futures in New York rose 1.16% to $4,392.24 per ounce. In Mumbai, October delivery contracts on the Multi Commodity Exchange climbed 0.86% to Rs 1,54,290 per 10 grams. Fresh speculative positions drove the local price increase. Turnover stood at 2,156 lots.
Dollar Weakness Supports Prices
A subdued US dollar provided direct support to gold prices. Lower oil prices also contributed to the rally. Energy costs dropped significantly, reducing inflationary pressure. This environment made the precious metal more attractive to buyers. The inverse relationship with energy prices remains a key driver.
Market Participants Reassess Risk
Investors are tracking Middle East developments closely. Global monetary policy outlook remains a focal point. Analysts note that fresh positions by market participants led to the recent rise. Spot demand was weak on Thursday but recovered on Friday. The CSI SSH Gold Equity Index opened down 1.5% in China.
Local Bullion Market Trends
Mumbai bullion market rates showed mixed signals. Standard gold opened at Rs 1,50,627 per 10 grams. Pure gold started at Rs 1,51,233 per 10 grams. Previous session data showed a drop of Rs 398. This decline was attributed to weaker spot demand. Current data reflects a shift toward buying activity.
GN auto markets/commodities: silver prices data indicates a broader precious metals trend. Gold's performance often leads silver in such moves. The market remains sensitive to Fed communication. Traders are watching for further cues on rate paths. Volatility is expected to persist as economic data releases continue.
