Blitz Bureau
NEW DELHI: The price of 24-carat gold (10 grams) dipped for a second successive week, due to fading expectations of Federal Reserve rate cuts and hopes of US trade deals with India and China. The price of 10 grams of 24-carat gold dipped Rs 4 on a daily basis fto Rs 1,20,770, according to data published by the India Bullion and Jewellers Association (IBJA). The price move at the weekend was also due to weakness in international bullion prices amid a strong dollar.
Bullion has gained 3.9 per cent so far this month, with US gold futures for December delivery trading flat at $4,016.70 per ounce. Sentiment turned cautious after the US Federal Reserve cut its benchmark interest rate by 25 basis points to the 3.75 per cent–4 per cent range, but hinted that the rate cut might be the final one in 2025, which dampened hopes of further near-term easing. Markets are now pricing in a 74.8 per cent probability of a 25-basis-point cut from the Fed in December compared with a 91.1 per cent chance a week ago, according to the CME Group.
Meanwhile, US President Donald Trump said he had agreed with Chinese President Xi Jinping to trim tariffs on China in exchange for Beijing cracking down on the illicit fentanyl trade, resuming US soybean purchases and keeping rare earths exports flowing. Analysts however hinted that some uncertainty remains over the durability of the deal. The yellow metal is up around 50 per cent this year, supported by strong central bank demand.
