Overview
- Global spot gold climbed to about $4,395–$4,400 per ounce in mid‑August, with Indian 24K benchmarks near ₹1.55–1.56 lakh per 10 grams and MCX intraday highs touching roughly ₹1.56 lakh.
- Weaker U.S. data reduced expectations for an imminent Federal Reserve rate increase, which weakened the dollar and lowered the opportunity cost of holding non‑yielding gold.
- Large inflows into gold funds—about $6.3 billion in the latest week reported by Bank of America—together with evidence of central‑bank and institutional purchases have reinforced the rally.
- Geopolitical tensions around the Strait of Hormuz and recent attacks on vessels have kept energy and inflation risks elevated, sustaining safe‑haven demand for bullion.
- Market views now diverge as some major forecasters trim year‑end targets while analysts watch this week’s Fed minutes and Gulf developments for signals that could either extend the rebound or reverse gains.