Analysts attributed the price rise to new positions being built by participants.
Globally, gold futures increased 0.54% to $2,643 per ounce in New York.
Renisha Chainani, Head of Research at Augmont, said, “Gold is seeing follow-through buying for the second day due to support from the Federal Reserve’s rate cut outlook.”
The September FOMC meeting minutes revealed that many members favored a 50 basis points rate cut, fueling expectations of further easing.
Traders now see a 20% chance of no rate cut in November, but the market is leaning toward a 25 bps reduction.
As US CPI growth slowed to 2.4%, the Fed’s focus on sustaining employment could further support gold prices.
Gold’s appeal as a hedge against inflation and currency risks makes it a favored asset in uncertain economic conditions.
Investment experts suggest that with gold rebounding from levels around $2,618 per ounce (₹74,750 per 10 grams) and heading towards $2,700 per ounce (₹76,400 per 10 grams), it presents a strategic buying opportunity for those looking to diversify their portfolios.
Heading into the weekend, traders will focus on the US PPI report, which could further drive USD demand and impact gold prices.
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