Gold prices in India increased on Saturday (August 17). The surge comes amid a weakened US dollar and growing expectations of an interest rate cut by the Federal Reserve in its September meeting.

Additionally, escalating tensions in the Middle East have supported demand for the precious metal.

The price of 24-carat gold prices climbed by ₹1,150, reaching ₹72,770 per 10 grams.

International gold market trends

In the international markets, gold prices have recently hit new record highs.

On Friday (August 16), spot gold prices reached a record $2,509.41 per ounce.

This rally is attributed to expectations of an interest rate cut by the Federal Reserve, coupled with a weakened US dollar.

The outlook for the US economy, with diminished recession fears, has improved market sentiment, driving increased investment in gold.

Traders noted that rising geopolitical tensions globally and anticipated reductions in US interest rates have led investors to increase their gold holdings.

Outlook and investment advice

With inflation rates in July falling below 3% for the first time since 2021, there are growing expectations that the Federal Reserve will cut rates in its September meeting.

Market analysts predict a potential rate cut of 25 basis points, which has contributed to the dollar’s weakness and provided support to gold prices.

Experts also highlight that a sharp decline in bond yields has supported gold prices to record levels.

Given the current market conditions, including the weakened dollar, anticipated rate cuts, and global uncertainties, investing in gold could be a prudent move.

The recent price surge reflects both increased demand and favorable economic forecasts for the precious metal.

However, as with any investment, it’s essential to consider personal financial goals and consult with a financial advisor before making significant investment decisions.