Gold Market
Gold prices rose more than 1% on Friday, recovering from recent lows. Strong US inflation data boosted expectations of a Federal Reserve rate hike next week. Indian demand stayed weak while Chinese buying held up.
TD Securities says gold is outperforming other precious metals despite rising energy prices and Fed hike expectations. Near-term CTA selling is possible below key levels, but longer-term support remains robust.
Gold prices in India rose on Thursday, with the cost per gram reaching INR 13,509.58. The increase comes amid broader market factors. FXStreet calculates the data by adapting international rates.
A study featured in the Silver Institute's Silver News finds the gold-silver ratio remains a relevant technical indicator, with a tendency to revert to a mean of around 60-1. Recent official sector gold demand has pushed it above average, but reversion is still expected.
Gold is currently trading around ₹1.5 lakh per 10 grams. An analyst expects it to move towards ₹2 lakh–₹2.1 lakh over the next 12 months, driven by rupee weakness, customs duties and global trends.
Spot gold gained 0.6% to $4,381.32 as a subdued dollar and renewed US-Iran tensions supported prices. Investors now await US inflation data for the next rate move.
TD Securities says gold has held firm despite higher Fed rate hike odds. The next big test is US inflation data, with structural demand still underpinning the metal.
Gold rose more than 1% on Wednesday, supported by the US Treasury's announcement of a bond buyback for September 10, even as the US Dollar clawed back some losses and yields edged higher.
Gold and silver gained internationally as the dollar softened. Traders are watching US inflation data for clues on the Fed's next move.