Gold price today: Gold rate becomes cheaper for certain buyers. Here's how

Gold price today became cheaper for some as US dollar rate was sedate. However, gold rate heads for a weekly gain as Spot gold on Friday rose 1.4 per cent to $4,190.57 per ounce after hitting a two-month low on Wednesday and US gold futures for December delivery gained 1.4 per cent to $4,215.30.

Among other metals, spot silver rose 1.5 per cent to $60.22, platinum gained 2.7 per cent to $1,677.80 and palladium climbed 3.3 per cent to $1,159.70.

Gold Rate Today


Gold price rose more than 1 per cent on Friday, helped by a softer US dollar and lower oil prices, while market players weighed lingering inflation concerns and the outlook for Federal Reserve interest rates. The US dollar rally took a breather, making greenback-priced bullion more affordable for holders of other currencies.

Oil prices fell as Middle East supply concerns eased somewhat after President Donald Trump said the US will not launch an attack on Iran before November's US midterm congressional elections amid productive talks to end their war.

"Possible tightening later on could keep gold at risk... Looking ahead, traders will watch upcoming economic data that could provide further monetary policy clues and influence sentiment ahead of the Federal Reserve’s October meeting," said Tony Sage, CEO of Critical Metals. "Softer numbers or guidance could push yields to the downside and support gold," Sage said.

Last month, the US central bank voted unanimously to raise the policy rate by a quarter of a percentage point.

St. Louis Fed President Alberto Musalem said the US central bank will need to hike rates again to bring inflation back to its 2 per cent target, although he declined to say what policymakers should do at their meeting later this month.

Traders are pricing in a 17 per cent chance of a rate hike in October and an 83 per cent probability of an increase in December, according to CME's FedWatch tool. Gold is traditionally seen as a hedge against inflation, but higher interest rates diminish the appeal of the non-yielding asset.

Why are Gold Prices Down in India, China?

Gold demand in India was sluggish this week as prices rebounded, while trading in top consumer China was subdued during the holiday-truncated trading period. In India, domestic gold prices were trading around 150,900 rupees ($1,561.87) per 10 grams on Friday, after falling to 145,538 rupees last week, the lowest level in nearly two months. Dealers quoted a discount of up to $6 an ounce over official domestic prices this week, inclusive of 15 per cent import and 3 per cent sales levies, compared to last week’s discount of up to $14.

In China, bullion traded at a premium of $10 an ounce to the global benchmark price. The Chinese markets reopened after the Golden Week holiday on Thursday. In Singapore, gold was sold between a premium of 50 cents and $1.50 this week, while in Hong Kong it traded flat-to-$1 premium. In Japan , gold was sold between a 50-cent discount and a 50-cent premium.