Gold Bounces Back: Global Cues Push Prices Higher

Gold prices rebounded in the domestic futures market after a three-day decline, driven by value buying and firm global cues following the US Federal Reserve's rate cut. While the Fed's decision influenced gold's recovery, silver prices also surged, reflecting gains in the precious metal market.

Gold prices have rebounded, ending a three-day losing streak, with a rise of Rs 572 to Rs 1,09,624 per 10 grams in domestic futures trading. This resurgence is attributed to value buying and firm global cues following the US Federal Reserve's recent rate cut.

On the Multi Commodity Exchange, gold futures for October delivery climbed by Rs 572 or 0.52 percent, reaching Rs 1,09,624 per 10 grams in a business turnover of 12,685 lots. Similarly, the December contract saw an appreciation of Rs 516 or 0.47 percent, hitting Rs 1,10,650 per 10 grams.

The Fed's cautious rate cut approach, coupled with robust central bank purchases, has driven gold prices up by nearly 39 percent this year, although profit-taking was noted after recent record highs. Silver followed gold's upward trend, with significant gains recorded in both domestic and international markets.

(With inputs from agencies.)