Gold rises 0.6% to $4,429.89/oz as US dollar weakens ahead of inflation data
Spot gold climbed 0.6% while silver surged Rs 3,500/kg on the Indian exchange following a second-day rally against a depreciating greenback.
Spot gold advanced 0.6% to $4,429.89 per ounce as investors bet on a weaker US dollar ahead of upcoming inflation reports. Silver futures for September 2026 delivery jumped Rs 2,200 to Rs 2,41,180 per kilogram on the Multi Commodity Exchange. Gold futures for October 2026 delivery fell by Rs 822 to Rs 1,53,640 per 10 grams despite overall market gains. Investors are watching the US producer price index released Thursday and consumer price index data on Friday, which could shape expectations regarding the Federal Reserve's next policy decision. Currently, a 60% probability exists for an interest rate hike at the central bank meeting next week. Iranian threats of economic warfare and missile strikes on US warships added tension to international markets last week. Gold prices previously dropped after recent data showed accelerated US job growth alongside a stable unemployment rate at 4.1%, suggesting strengthening labor conditions. Higher interest rates typically reduce gold's attractiveness due to its lack of yield.
