Gold rebounds Rs 600 to Rs 1.56 lakh/10g

New Delhi, Aug 17 (PTI): Gold prices rebounded by Rs 600 to Rs 1,56,800 per 10 grams in the national capital on Monday as a weak US dollar and firm global trends breathed fresh life into bullion demand.
The yellow metal of 99.9 per cent purity had closed at Rs 1,56,200 per 10 grams on Friday. However, silver remained flat at Rs 2,40,000 per kilogram (inclusive of all taxes) for the second straight session, according to local traders. “Gold advanced on Monday, supported by a softer dollar and easing expectations for aggressive Federal Reserve’s tightening following a series of weaker US economic indicators,” Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said.
Moderate US inflation data last week, along with softer employment and retail sales figures, reduced expectations of further monetary policy tightening and kept the dollar under pressure, improving demand for precious metals, he added.
The recovery extended to the international markets, with spot gold trading 0.48 per cent higher at USD 4,397.59 per ounce. Silver rose more than 1 per cent to USD 65.58 per ounce.
“Spot gold was trading with a gain of 0.5 per cent at USD 4,398 per ounce and is expected to maintain a positive undertone on dollar weakness and capped oil prices,” Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said. The geopolitical backdrop, however, remains in focus. Singh said US President Donald Trump is preparing to impose more economic sanctions on Iran, in addition to the 2,200 sanctions already in place since 2018, including a continued blockade of Tehran’s ports.
Meanwhile, the 60-day US-Iran MoU ceasefire is set to expire on Monday, although the deadline is not set in stone and has lost relevance following recent developments. For traders, the next signpost is closer to home in the US policy calendar. Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said market participants will focus on the Fed’s FOMC meeting minutes this week for further cues on the US Central bank’s interest-rate outlook and the next direction of bullion prices.