Gold price at one-month high in global market, settles at $2,411 per ounce; check local rates

Gold prices this week settled at a one-month high in the global market, boosted by the growing optimism over interest rate cuts by the US Federal Reserve in the near future.

Spot gold closed at $2,411.1 an ounce in the trading on Friday, July 12, which was down 2% as compared to the last closing price. However, the weekly close still marked a one-month high for the metal.

At the Commodities Exchange Center (COMEX), gold futures for August delivery closed at $2,416 an ounce, down 0.24% as against the previous day's closing price.

Gold prices had shot up on Thursday, July 11, in the aftermath of the US government releasing data that showed retail inflation softening to a 3-year low.

The 12-month inflation rate decelerated to 3% in June, down 0.1% as compared to May. The core inflation, which excludes volatile food and fuel rates, stood at 3.3%.

A downward trend in inflation encourages the Fed to cut rates. A reduction in lending rates would lead to more liquidity in the economy, which in turn would boost gold demand as the metal is seen as a hedge against inflation.

Gold rates in Indian cities

• As per the local rates tracked by Upstox, the per 10 gram of 24 karat gold in Mumbai was trading 0.17% lower at ₹74,159.
• In New Delhi, the retail prices jumped by 0.42% to ₹74,014.
• In Kolkata, the rate was down 0.46% at ₹74,377.
• In Chennai, the price decreased by 1.04% to ₹73,942.

According to analysts, the global demand for gold is expected to remain strong in the medium-to-long term. The price could peak to $3,000 an ounce in the international market, as per a forecast released by Citi Research in April.