Mumbai, 27 Jul (Commoditiescontrol): Gold prices rose by 1% on Friday, bolstered by declining U.S. Treasury yields and growing optimism for a Federal Reserve interest rate cut in September. This follows data showing only modest increases in U.S. prices for June.
Spot gold climbed approximately 1% to $2,386.99 per ounce by 10:17 a.m. ET (1417 GMT), recovering from its lowest level since July 9, hit on Thursday. U.S. gold futures for August delivery increased by 1.4%, reaching $2,386.
Fresh evidence on Friday indicated progress in the Fed’s efforts to combat inflation, heightening expectations that policymakers will signal interest-rate cuts during their meeting next week. Lower interest rates decrease the opportunity cost of holding non-yielding bullion, making gold more attractive to investors.
The personal consumption expenditures (PCE) price index rose by 0.1% last month after remaining unchanged in May, according to the U.S. Commerce Department's Bureau of Economic Analysis. Following this data release, benchmark 10-year note yields fell to a one-week low.
Meanwhile, physical demand for gold in India, the world's second-largest consumer, saw a boost after the country slashed import duties on gold and silver earlier this week. This move led to gold premiums in India soaring to their highest level in a decade.
In other precious metals, spot silver fell by 0.6% to $27.80 per ounce, marking its worst week since early December. Platinum edged up by 0.1% to $931.83, while palladium dropped by 1.1% to $897. Both platinum and palladium, along with silver, were on track for their third consecutive weekly decline.
(By Commoditiescontrol Bureau: 09820130172)
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