Ahead of the FOMC meeting on July 31, gold prices in Bangalore have surged, with 24K gold just Rs 80 away from hitting the Rs 70,000 mark. Investors expect a dovish stance from the FOMC, led by Chair Jerome Powell, which may weaken the US dollar and boost non-yielding assets like gold.
Gold prices in Bangalore saw a significant rise, with 24K gold increasing by Rs 8,700 per 100 grams to Rs 6,98,200. The 10 grams price soared by Rs 870 to Rs 69,820. Meanwhile, 22K gold also saw an increase, with 100 grams up by Rs 8,000 to Rs 6,40,000, and 10 grams rising by Rs 800 to Rs 64,000.
In the Souk market, 18K gold jumped significantly, with 100 grams up by Rs 6,600 to Rs 5,23,700. The 10 grams price rose by Rs 660 to Rs 52,370.
Rahul Kalantri, VP of Commodities at Mehta Equities, noted that gold and silver prices surged following news of Israel’s assault on Lebanon, pushing metal prices above their resistance levels. Earlier, strong US data indicating a tight jobs market kept prices steady. Declining US Treasury bond yields and a weakening dollar have also supported bullion prices as traders await the Federal Reserve’s policy decision.
Despite the Fed keeping interest rates unchanged in its June policy, market expectations are leaning towards an early rate cut based on recent economic indicators. Investors are closely watching the upcoming ISM Manufacturing PMI and Nonfarm Payrolls report for further market direction.