Gold Rises Beyond $1,950 as the Dollar Falters"

Published on Sep 11, 2023 14:49

Bullion futures surged above $1,950 per ounce on Monday, rebounding from last week`s losses due to a weakening US dollar and anticipation of crucial US inflation data impacting interest rate expectations. The metal had experienced a 1.2% drop to $1,942.6 per ounce last week, erasing the prior week`s 1.4% gain. Strong US economic indicators, including low unemployment claims and robust services sector performance, suggested a more hawkish stance from the Federal Reserve. Inflation concerns re-emerged as the Consumer Price Index rose to 3.2% in July. The Dollar Index hit six-month highs, reflecting market reactions to potential Fed actions, marking its eighth consecutive week of gains, up 4.2% since June. In the domestic market, MCX bullion futures for October delivery were seen trading at Rs 59,060, registering an increase of Rs 162 per 10 grams. This followed a week characterized by a range-bound trading pattern, culminating in a 0.8% weekly decline to close at Rs 58,898 per 10 grams.