Gold prices fell by 0.8%, settling at 71,611 INR per 10 grams due to strengthening U.S. dollar and Treasury yields following inflation data. However, gold ended the week positively due to anticipation of a potential interest rate cut by the U.S. Federal Reserve in September.
The personal consumption expenditures price index rose by 0.2% in July, matching forecasts, increasing the probability of a 25-basis-point rate cut to 69%. The President of the Federal Reserve Bank of Atlanta has expressed a cautious stance on rate cuts, citing the need for more economic clarity.
In India, gold discounts reached their highest level in six weeks, with dealers offering up to $8 an ounce over official domestic prices. In China, gold discounts ranged from $1 to $10 per ounce, reflecting sluggish demand due to high prices and weak consumer sentiment.
